On Tuesday, fuel prices in Lebanon saw another significant increase, leading to a rise in the price of various petroleum products. The canister of 95-octane gasoline rose by LBP 14,000, the price of 98-octane gasoline increased by LBP 15,000, diesel increased by LBP 1,000, and the price of LP gas rose by LBP 14,000.
As a result, the new prices for the aforementioned products in Lebanon are as follows:
95-octane gasoline: LBP 1,493,000
98-octane gasoline: LBP 1,529,000
Diesel: LBP 1,426,000
LP gas: LBP 981,000
Back in January, the the price of a 95-octane gasoline was 713,000 LBP in comparison. This price hike comes as a result of the country’s ongoing economic crisis, which has been exacerbated by the recent currency devaluation. Last week’s sudden and sharp decrease in the value of the Lebanese pound created a wave of confusion in the markets and triggered widespread anger among citizens. Within less than 24 hours, the exchange rate in the parallel market plummeted from 68,000 pounds to the dollar to 77,000 pounds, resulting in a significant gap between purchase and sale prices.
The situation has become dire for many, with warnings that people can no longer afford to buy anything. The impact of the fall has already been felt, with gas station owners refusing to sell fuel and government officials attempting to prevent protests from turning into widespread chaos on the streets.
The Lebanese government has been grappling with an ongoing economic crisis that has been exacerbated by the COVID-19 pandemic and political instability. The country has seen a sharp decline in its currency, which has lost over 90% of its value in the past two years. This has resulted in a rise in the cost of living for citizens, with many struggling to afford basic necessities.
Consequences of the increase in fuel prices in Lebanon
This increase in fuel prices is expected to have a ripple effect on various industries, as transportation costs are likely to increase. The agricultural sector, which heavily relies on fuel to power tractors and other machinery, is also expected to be affected.
The Lebanese government has been struggling to address the ongoing economic crisis, with protests erupting across the country in recent months. The fuel price hike is likely to further fuel public anger and unrest.