Lebanon Loses $400 Million Yearly from Fuel Smuggling to Syria

Lebanese bread seen at a bakery in Lebanon. NNA
Lebanese bread seen at a bakery in Lebanon. NNA
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Lebanon Loses $400 Million Yearly from Fuel Smuggling to Syria

Lebanese bread seen at a bakery in Lebanon. NNA
Lebanese bread seen at a bakery in Lebanon. NNA

Lebanon is losing millions of dollars yearly due to the smuggling of goods to Syria through illegal border crossings.

A report broadcast by a local television channel revealed this week that the amount of smuggled fuel to Syria is estimated at $400 million per year.

It said traffickers have recently added wheat on their list of smuggled goods, depleting the capacity of the state to provide basic commodities to the local market.

The Lebanese Central Bank (BDL) subsidizes these two commodities.

BDL supplies dollars for the import of wheat, medicine, gasoline, diesel, and butane at the pegged exchange rate of LL1507.5, while the black market rate is above LL4,000.

The television said because wheat in Lebanon is subsidized, the cost of one metric ton is $150 while in Syria it is $320.

The wheat is milled in Lebanon and sold as flour at low prices in order for the bakeries to maintain the fixed price of the bread pack at LL1,500.

“This report shows again the very negative impact of illegal smuggling on the state’s finances,” said Lebanese Forces leader Samir Geagea.

In January, Finance Minister Ghazi Wazni revealed that $4 billion to $5 billion would be requested from international donor countries to finance purchases of wheat, fuel and medicines.

Democratic Gathering MP Hadi Abou Al-Hosn said the Progressive Socialist Party would go to the judiciary and question the government on this issue.

“While the Central Bank has put limits on the withdrawal of dollars from bank deposits to buy basic needs, such as wheat, fuel and medicine, depriving people of their money, we see mobs draining the economy by smuggling flour and diesel across the illegal border crossings in both directions. The situation is no longer bearable," he said.

Lebanon’s economic crisis continues to worsen, while the value of the Lebanese lira dipping and the prices of goods tremendously increasing.

In October, Lebanese banks began reducing dollar withdrawals before they stopped them entirely last month.

Last week, the government formally requested the assistance of the International Monetary Fund (IMF) to save Lebanon from the deep financial crisis.



UN Humanitarian Chief Urges Massive Aid Boost for Syria

UN humanitarian chief Tom Fletcher (R) said he received "the strongest possible reassurances" from Syria's interim prime minister Mohammad al-Bashir that aid workers would have the necessary access on the ground. SANA/AFP
UN humanitarian chief Tom Fletcher (R) said he received "the strongest possible reassurances" from Syria's interim prime minister Mohammad al-Bashir that aid workers would have the necessary access on the ground. SANA/AFP
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UN Humanitarian Chief Urges Massive Aid Boost for Syria

UN humanitarian chief Tom Fletcher (R) said he received "the strongest possible reassurances" from Syria's interim prime minister Mohammad al-Bashir that aid workers would have the necessary access on the ground. SANA/AFP
UN humanitarian chief Tom Fletcher (R) said he received "the strongest possible reassurances" from Syria's interim prime minister Mohammad al-Bashir that aid workers would have the necessary access on the ground. SANA/AFP

Visiting UN humanitarian chief Tom Fletcher called Wednesday for a massive aid boost for Syria to respond to "this moment of hope" after the ouster of longtime strongman Bashar al-Assad.
"Across the country, the needs are huge. Seven in 10 people are needing support right now," Fletcher told AFP in a telephone interview as he visited Syria.
"I want to scale up massively international support, but that now depends on donors. The Syria fund has been historically, shamefully underfunded and now there is this opportunity," he said.
"The Syrian people are trying to come home when it's safe to do so, to rebuild their country, to rebuild their communities and their lives.
"We have to get behind them and to respond to this moment of hope. And if we don't do that quickly, then I fear that this window will close."
Half of Syria's population were forced from their homes during nearly 14 years of civil war, with millions finding refuge abroad.
UN officials have said a $4 billion appeal for Syria aid is less than a third funded.
"There are massive humanitarian needs... water, food, shelter... There are needs in terms of government services, health, education, and then there are longer term rebuilding needs, development needs," Fletcher said.
"We've got to be ambitious in our ask of donors.
"The Syrian people demand that we deliver, and they're right to demand that we deliver," he said. "The world hasn't delivered for the Syrian people for more than a decade."
'Test for all'
As part of his visit, Fletcher met representatives of Hayat Tahrir al-Sham (HTS), the opposition group which spearheaded the offensive that toppled Assad, including its leader Ahmed al-Sharaa and interim prime minister Mohammad al-Bashir.
Fletcher said he received "the strongest possible reassurances" from Syria's new administration that aid workers would have the necessary access on the ground.
"We need unhindered, unfettered access to the people that we're here to serve. We need the crossings open so we can get massive amounts of aid through... We need to ensure that humanitarian workers can go where they need to go without restriction, with protection," he said.
"I received the strongest possible reassurances from the top of that caretaker administration that they will give us that support that we need. Let's test that now in the period ahead."
Assad's government had long imposed restrictions on humanitarian organizations and on aid distribution in areas of the country outside its control.
Fletcher said that the coming period would be "a test for the UN, which hasn't been able to deliver what we wanted to over a decade now... Can we scale up? Can we gain people's trust?
"But it's also a test for the new administration," he added. "Can they guarantee us a more permissive environment than we had under the Assad regime?
"I believe that we can work in that partnership, but it's a huge test for all of us."