Almost one year after the Central Bank of Lebanon partially lifted subsidies on gasoline, it has now decided to fully remove the rest of it.
The Central Bank of Lebanon had fully removed subsidies on diesel fuel, however, it kept providing the market with USD at the Sayrafa rate for gasoline imports. Reports are claiming this is changing soon.
According to multiple sources, Riad Salameh, the Governor of the Central Bank, has informed the government that he can no longer subsidize gasoline at the Sayrafa rate. This means that gasoline will be priced at LBP 28,500 per USD, which is the black market exchange rate as of the writing of this article, instead of LBP 24,900.
This signifies a 14.5% increase in the prices of gasoline, making even more people unable to afford one of their basic needs. Analysts, however, argue that the main problem is that businessmen will now head to the black market for USD supply.
Lebanon spends nearly $3 billion yearly on fuel and gasoline, which means that once this huge demand for USD reaches the black market, the USD exchange rate is likely to skyrocket.
