Price of 95 octane fuel increases 80000 LBP

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On Thursday December 28, 2022, the price of 95 octane fuel increase 80000 LBP and that of 98 octane fuel increased 83000 LBP, while the price of diesel increased 90000 LBP and that of gas increased 53000 LBP.

The prices of hydrocarbon derivatives became as follows:

- Gasoline 95 octane: 709,000 LBP

- Gasoline 98 octane: 729,000 LBP

- Diesel Oil: 790,000 LBP

- Gas Canister: 466,000 LBP

After lowering fuel prices on Wednesday, the Energy Ministry released new hydrocarbon derivatives prices on Thursday that showed an increase. This came at the same time as the Bank of Lebanon (BDL) released a statement on December 27, 2022, allowing companies and individuals to buy US dollars at the new Sayrafa exchange rate of 38,000 Liras.

The ministry also indicated Tuesday that the success of this initiative is entirely linked to BDL commitment, on the one hand, and the banks, on the other, to this measure.

The Energy Minister, Walid Fayyad, conducted a series of contacts and consultations yesterday after the confusion in the local market and the meetings he held with filling station owners and distributors.

However, the Energy Minister had asked for written clarification on Tuesday regarding the mechanism for implementing BDL statement and the banks' adherence to it. Fayyad received a written request from Caretaker Prime Minister Najib Mikati to keep the fuel pricing tied to the black market exchange rate until he could implement the mechanism.

Mikati's statement highlighted that the commercial banks needed time to organize the selling process with BDL since they could not meet all market demands following BDL's statement. This impacted citizens' interests, particularly during the festive season. Therefore, it was requested to maintain the fuel prices in proportion to the black market exchange rate until the system governing the interaction between BDL and all commercial banks is completed, based on the aforementioned BDL statement.

Additionally, BDL asked the banks not to give US dollars to fuel distribution companies, according to Sayrafa platform.

Furthermore, Fayyad hoped that financial policies from now on would be more transparent to avoid allowing for application discretion and to stop banks and traders from profiting at the expense of citizens.