Lebanese Leaders at Loggerheads as Fuel Crisis Worsens

Lebanese Leaders at Loggerheads as Fuel Crisis Worsens

Motorbike and car drivers wait to get fuel at a gas station, after the central bank decided to effectively end subsidies on fuel imports, in Damour, Lebanon, August 13, 2021. (Reuters)

Lebanese President Michel Aoun called an emergency meeting to discuss a worsening fuel crisis on Friday but was rebuffed by the prime minister as political paralysis obstructed efforts to find a solution, even as much of the country grinds to a halt.

Dwindling fuel supply has plunged Lebanon into extended blackouts and long queues for petrol and bread, with many bakeries and hospitals almost forced to close. Angered by the government's inaction, protesters blocked roads across the country. read more

This week the central bank announced an effective end to fuel subsidies that have drained the reserves at a time when Lebanon is in a state of financial collapse.

The government opposes the move, which will prompt prices to rise sharply, and criticizes the central bank for not reversing the move, while importers say they will not extend supplies until an agreement is reached, according to Reuters.

However, Central Bank Governor Riad Salameh said on Friday that the government had been aware of the decision announced on Wednesday to start extending lines of credit