Lebanon Raises Gasoline Prices Further

Cars stand in line at a gas station as they wait to fuel up in Damour, Lebanon June 25, 2021. REUTERS/Aziz Taher/File Photo
Cars stand in line at a gas station as they wait to fuel up in Damour, Lebanon June 25, 2021. REUTERS/Aziz Taher/File Photo
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Lebanon Raises Gasoline Prices Further

Cars stand in line at a gas station as they wait to fuel up in Damour, Lebanon June 25, 2021. REUTERS/Aziz Taher/File Photo
Cars stand in line at a gas station as they wait to fuel up in Damour, Lebanon June 25, 2021. REUTERS/Aziz Taher/File Photo

Lebanon’s incoming minister of energy announced on Friday new price hikes for gasoline of nearly 40%, effectively narrowing the fuel subsidy.

This raises the price of 20 liters of 95-octane gas to 174,300 Lebanese pounds, and 98-octane gas to 180,000 Lebanese pounds. That is between $116 and $120 respectively, according to the official rate.

The price increase does not fully lift the gasoline subsidy, a step expected to take place soon.

"This is the stage before last of lifting the subsidy," Georges Braks, a member of the Petrol Station Owners' syndicate said. "The subsidy on fuel I imagine from now till the end of the month will go to the last stage and be lifted completely and all of fuel will then be non-subsidized."

Amid the economic crisis, the local currency has been in a free fall, and there are multiple exchange rates, including one set by the central bank to organize imports. The currency pegged for 30 years to the dollar at 1,500 Lebanese pounds now trades on the black market at ten times that rate.

Long queues outside gas stations have often descended into chaos or violence and caused major traffic jams. Gas stations rationed the amount of gasoline they distributed.

Prices of diesel for power generating, amid an almost non-existent national grid, have increased more than tenfold — making it impossible for many families to secure electricity for themselves. Many businesses had to shut down.



Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
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Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)

Lebanon’s new central bank governor vowed Friday that the institution will fight money laundering and the financing of terrorism and will work independently away from political intervention.
Karim Souaid, who was speaking after officially taking office in Beirut, added that he will work on restructuring the banking sector, public debt and returning money to depositors, The Associated Press reported.
Lebanon’s economy has been witnessing its worst crisis in its modern history since 2019 and the state must implement reforms demanded by the international community. Such reforms are needed to unlock international aid, and on top of that, Israel’s 14-month war with Hezbollah that caused what the World Bank estimates was $11 billion in damages and economic losses.

Since the historic meltdown began Lebanon has been running on a cash economy and in October, the Paris-based Financial Action Task Force, or FATF, an international anti-money laundering watchdog, placed Lebanon on its “grey list.”
“We will work on implementing international laws on top of them combating money laundering and supporting terrorism,” Souaid said.

The former asset manager added that banks in Lebanon should recapitalize by pumping new money and those that cannot and don’t want to can merge with other lenders. He said that the priority will be to return deposits starting with people who have small accounts. He said the return of deposits should be the responsibility of the banks, central bank and the state.

Souaid said the central bank will study all economic recovery plans put forward by previous governments to help the small nation get out of the crisis.

Souaid also pledged to safeguard the central bank's independence from political pressure and prevent conflicts of interest.
"I will ensure that this national institution remains independent in its decision-making, shielded from interference, and grounded in the core principles of transparency and integrity," he said.

Wassim Mansouri, who had been acting central bank governor since July 2023, said the central bank’s reserves stood at 10.727 billion at the end of March.

Souaid succeeds Riad Salameh, the embattled former governor of 30 years whose term ended with several international corruption cases lodged against him and for embezzlement and other financial crimes.