Lebanon’s central bank lifts all fuel subsidies

Beirut: Lebanon’s central bank has lifted all remaining fuel subsidies, in a move that promises a hike in prices and increased pressure on the local currency, Elnashra news website reported.

Over a year ago, the central bank announced a gradual programme to lift subsidies on fuel imports in an attempt to curb the drop in foreign currency reserves, Xinhua news agency reported.

“Gas station owners will now price fuel at the country’s black market rate,” George Brax, spokesman of Gas Station Owners’ Syndicate, told Elnashra on Monday.

The black market exchange rate of the Lebanese pound hovers around 35,600 pounds against the US dollar now, as opposed to the official pegged rate of 1,500 pounds.

Lebanon suffers from a steep economic crisis that has dented the value of the local currency against the dollar by more than 90 per cent.