Lebanese soldiers raid a gas station on Saturday. (Credit: Mohammad Yassine)
BEIRUT —Banque du Liban and the Energy Ministry reached an agreement on Saturday that could alleviate, for a few days at least, the fuel crisis, which has led to roadblocks across the country as residents express their frustration over fuel shortages.
Here's what we know:
• In a statement published by the state-run National News Agency, the General Directorate of Oil and the central bank announced that BDL and the Energy Ministry had agreed on Saturday that payment for “the stockpile of fuel currently held by importers would be settled [by BDL] at the exchange rate of LL3,900,” enabling importers to sell it at the ministry’s current price list. The statement adds that with this agreement in place, importers “are required to deliver the [fuel to the] local market.” The statement goes on to say that priority for fuel distribution should be given to hospitals, pharmaceutical and serum factories, bakeries, mills and essential facilities.”
• Speaking to L’Orient Today following the announcement, George Fayad, who heads the petroleum importers companies association, said that importers would “start delivering from today and [gas stations] will open tomorrow.” However, he emphasized that the BDL-Energy Ministry agreement only concerns fuel stocks already in the country and does not apply to future imports.
• Since Banque du Liban announced on Wednesday evening that fuel subsidies would end, most gas stations have stopped selling their inventory until new prices for fuel products are set. With subsidies removed, fuel would be sold at the lira’s parallel market exchange rate to the US dollar — approximately LL20,000 — rather than at the subsidized rate of LL3,900.
• For its part, the Lebanese Army announced on Twitter that it would mobilize to ensure that gas stations implement the BDL-Energy Ministry decision. “Our units will begin to search closed gas stations and confiscate all stocks of gasoline for distribution to citizens,” the tweet stated.
• Roadblocks have appeared across the country as protesters express their frustration with supply shortages and the lack of decisive state action to resolve the issue.