Walid Fayyad, the Lebanese Minister of Energy and Water, announced an increase in all fuel prices today, after returning to adopting the pricing of petroleum derivatives in Lebanese pounds, according to the exchange rate in the unofficial market, which today amounts to 44,000 pounds to the dollar, and not according to the price of the official exchange platform, which is 38,000 pounds to the dollar.
This comes after a severe fuel crisis yesterday that led to the closure of most gas stations in protest against the pricing of petroleum products in pounds according to the price of an exchange platform, while companies are forced to pay the price of fuel and procure the dollars needed to buy it from the unofficial market, despite the decision of the Banque du Liban issued last Monday to raise the price of the dollar by An exchange platform from 31,200 pounds per dollar to 38,000 pounds per dollar and the opportunity for all companies and individuals to buy dollars according to this price, but most banks did not implement this decision, which resulted in the continued procurement of dollars from the unofficial market.
The Minister of Energy confirmed that he requested a written clarification yesterday on the mechanism for implementing the Banque du Liban statement and commitment to it from both the Central Bank and the banks, explaining that he had received a written letter from the Prime Minister yesterday evening requesting a return from his decision and maintaining the fuel pricing linked to the exchange rate in the parallel market. Until the dollar management mechanism can be implemented according to an exchange rate.
Fayyad explained, saying: “Today, the Ministry of Energy and Water – General Directorate of Oil issued a new schedule that recorded an increase in the prices of liquid fuels, after the ministry reduced prices yesterday, in line with the issuance of the Banque du Liban statement, which allows the possibility of buying dollars according to an exchange rate platform, i.e. 38 thousand pounds, for companies and citizens.” According to what was announced by the statement, which achieved material savings for all the Lebanese people.
He added that he conducted yesterday a series of contacts and consultations after the confusion that occurred in the local market and the meetings he held with station owners and distributors.
Fayyad published the most prominent of what was stated in the Prime Minister’s book, in which he said: “It was found that the commercial banks were unable to meet all market demands in implementation of the statement issued by the Banque du Liban, so they need a period of time to be able to organize the sale process with the Banque du Liban at a time when the fuel distribution crisis has worsened. It reflected negatively on the interests of citizens, especially during the period, that is, during the holiday period, and he must await the completion of the mechanism that regulates the relationship between the Banque du Liban and all commercial banks. The completion of the aforementioned mechanism.
Fayyad said that the Central Bank of Lebanon asked banks this morning not to hand over US dollars to fuel distribution companies, according to an exchange platform.