Lebanon Increases Fuel Prices By More Than 35% Amid Crisis

Lebanon’s energy ministry Tuesday increased gasoline and fuel prices by 35%, a move that could lead to a sharp increase in prices of most commodities in the crisis-hit country.

The hike came days after caretaker Prime Minister Hassan Diab granted approval for financing fuel imports at a rate higher than the official exchange rate, effectively reducing critical fuel subsidies.

Lebanon is going through an unprecedented economic and financial collapse, coupled with a months-long political deadlock over the formation of a new government.

Fistfights and shootings have erupted at some gas stations over the past weeks as frustrated citizens lined up for hours to fill up their tanks and the shortages have led to protests around Lebanon.

Electricity cuts last for much of the day, and people have had to turn off private generators for several hours to ration fuel.

Also, Last week, the economy ministry raised the price of subsidized bread by 18%, the fifth time it was raised in a year.

The price of gasoline, which in Lebanon is calculated for 20 liters (reached 62,000 Lebanese pounds at the 35% increase, or about $3.60 according to black market rates.

Despite the hike, motorists still lined up at gas stations Tuesday to fill their tanks. Diesel increased 38%, to 46,100 pounds — about $2.70 on the black market.

Fuel distributor’s representative Fadi Abu Shakra urged calm. He was quoted by the Lebanese state news agency, NNA, as saying that six fuel tankers began offloading oil products after midnight on Monday to ease demands.