Lebanon: army deployed to reopen gas stations amid fuel shortage

Published on : 08/14/2021 – 4:37 PM

Lebanon saw the army deploy on Saturday August 14 to reopen of service stations facing severe fuel shortages that affect the supply of basic necessities. The country is going through one of the worst economic crises in the world since 1850, according to the World Bank.

The governor of the Central Bank refuses to restore fuel subsidies without a law passed by Parliament. “I will not go back on (the decision to) the lifting of fuel subsidies unless the use of compulsory reserves (of currency) is legalized”, declared the director of the Central Bank (BDL), Riad Salamé. , at the microphone of a local radio. “We still have $ 14 billion in (mandatory) reserves, in addition to $ 20 billion in external assets.”

The BDL announced Wednesday evening its decision to grant credit lines only at the black market rate for importing fuel, but fuel subsidies had been de facto lifted for weeks.

The decision sparked anger and panic in the country, raising fears of yet another rise in prices and exacerbating shortages, including of bread. Several establishments have also had to close their doors for lack of diesel to power private generators, while power outages peak at more than 22 hours a day.

BDL reserves – allocated to basic commodity subsidies since the onset of the crisis to curb inflation – have melted as the national currency continues to sink thresholds against the dollar making the cost of importing more expensive. ‘all the more expensive.

The Lebanese pound has lost more than 90% of its value against the dollar which is traded today on the black market at more than 20,000 pounds, against an official rate still maintained at 1,507 pounds per dollar.

Criticized by several political leaders for this decision, Riad Salamé defended himself on Saturday: “All (…) were aware of the decision. Let them go to Parliament and vote the law instead of playing comedy “, he replied.

“Unacceptable that there is no diesel, no gasoline, no electricity”

On Saturday, endless lines stretched out in front of gas stations as fuel trucks were stormed in some areas by angry citizens, according to local media.

In a statement, the army threatened to “search closed gas stations, confiscate all quantities of gasoline stored there (…) and distribute them directly and free of charge” to motorists.

The internal security forces (ISF) followed suit, saying they will not “stand idly by” in the face of chaos. Some service stations have closed to keep fuel stock pending further price hikes.

According to AFP correspondents, soldiers deployed en masse to gas stations in the early afternoon imposed the opening of several of them north of Beirut and elsewhere.

Riad Salamé also criticized on Saturday the importers and distributors of fuels, accused of taking advantage of subsidies and of storing large quantities to sell them at a higher price on the black market or in neighboring Syria. “It is unacceptable that we import $ 820 million worth of fuel and that there is no diesel, gasoline or electricity” on the local market, he lamented, indicating that this amount should be enough for three months. , “not just a month”.

In office since 1993, Riad Salamé is accused by the street of having, like the barons of Lebanese politics, led the country adrift and transferred large sums abroad during the popular protest of October 2019 and having imposed draconian banking restrictions, still in effect. He is the subject of judicial investigations in Lebanon, Switzerland and France in several cases, including embezzlement of public funds and illicit enrichment.

With AFP