Lebanon Businessnews News

Fuel crisis looming
Petroleum companies halt distribution to gas stations ahead of three day strike next week
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Oil importing companies have refrained from distributing fuel to gas stations after the Minister of Energy and Water, Gebran Bassil, failed to sign this week’s update of fuel prices.

Gas stations said that they will continue to sell fuel in their stocks. Oil sector representatives have warned that the fuel stock in gas stations will run out within one week, if Bassil fails to sign the prices’ update.

The stakeholders in the petroleum sector had called for a three day strike next week (on April 2, 3, and 4). They are demanding an increase of LL820 ($0.54) on the price of 20 liters of fuel, of which LL500 ($0.3) would go to gas stations, LL120 ($0.08) to transportation tanks, and LL200 ($0.13) to oil companies. Gas stations currently receive a fixed fee of around $1 per tank. Gasoline distribution companies collect $0.2 per each fuel tank, while gasoline transporters receive $0.18 for each tank.

Meanwhile, land transportation unions are gearing up for a strike on April 19. The unions and syndicates of public transportation are calling the government to cap gasoline prices at LL25,000 per tank, and those of fuel oil at LL20,000 per tank.

According to the weekly prices update released last week, the price of 20 liters of 98-octane gasoline was LL37,900, while that of 95-octane graded gasoline was LL37,200. Fuel prices are expected to continue to rise in light of the global prices hike.

reported by Hanadi Chami
Date Posted: Mar 29, 2012
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