Lebanese fuel prices set to rise as new exchange rate is set

BEIRUT, Aug.21 (Reuters) – Lebanese fuel prices are set to rise sharply after the government decided to raise the exchange rate used to set it at 8,000 pounds to the dollar from the previous level of 3,900, officials said , with the aim of alleviating crippling fuel shortages.

Central bank governor Riad Salameh told Reuters the bank’s Sayrafa platform would provide dollars for fuel imports at its market rate, which was 16,500 on Friday, a little below the rate. parallel market of about 19,000.

He said the difference between Sayrafa’s rate and the 8,000 level would be a loss for the government.

A statement released after a meeting between Salameh, President Michel Aoun and other government officials said the central bank would open a temporary account of up to $ 225 million until the end of September to cover the grant.

The decision was intended to cover “urgent and exceptional subsidies” for gasoline, fuel oil and cooking gas, he said.

Reporting by Maher Chmaytelli, Laila Bassam; Writing by Tom Perry; Editing by Giles Elgood and Christina Fincher

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