Lebanon’s govt raises official price of 95-octane gasoline by 66 pct

Lebanon’s govt raises official price of 95-octane gasoline by 66 pct

The Lebanese government said on Sunday that it was raising gasoline prices by 66 percent in a partial reduction of fuel subsidies as it seeks to ease crippling shortages that have brought the country to a standstill.

The increase in 95-octane gasoline prices would take effect immediately, the government said in a statement. It follows the state’s decision on Saturday to change the exchange rate used to price petroleum products in a bid to ease the shortages.

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The fuel crisis worsened this month when the central bank said it could no longer finance fuel imports at heavily subsidized exchange rates and would switch to market rates.

The government, concerned about the impact of price rises, in a compromise agreed with the central bank on Saturday to raise prices, but by less than the market rate, to allow subsidized imports to resume for now.

The rise in prices will mean more hardship in a country where poverty levels have soared during a two-year-long financial meltdown that has wiped more than 90 percent off the value of the Lebanese pound.

The decision was made at an emergency meeting on Saturday attended by the president,