Lebanon Businessnews News

Green gasoil will replace red fuel
No extra charge
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The Ministry of Energy and Water (MoEW) will switch its imports from ‘red’ gasoil to ‘green’ gasoil.

Red gasoil is high in sulfur, containing 5,000 particles per million (ppm). Green gasoil, which contains just ten PPM or less, is more eco-friendly, and complies with international standards.

The circulation of green gasoil will begin at the end of August.

“There will be no additional fees because the prices of red and green gasoil are the same,” said Cesar Abi Khalil, Energy Minister.

Deir Ammar and Zahrani power plants will continue to run on regular red diesel. “In the future, these two plants will operate on gas. This is why they will be kept operating on red diesel for now,” he said.

Maroun Chammas, Chairman of the Association of Petroleum Importing Companies (APIC), said that the switch will reduce fraud in the quality of gasoil and boost consumer confidence.

The smuggling of gasoil from Syria to gas stations in the Bekaa and Baalbek has been an issue lately. The Customs Higher Council caught and fined some smugglers, and is tracking others.

The government is in charge of ‘red’ gasoil imports. Salim Ramadan, General Manager of Uniterminals, which has the lion’s share of the ‘green’ gasoil market, said: “APIC has agreed to buy the green gasoil that the state will import in case [the state] it is not able to liquidate the merchandise.”

The government and the private sector imported 3.7 million tons of both red and green gasoil at a value of $2 billion last year, according to Customs.

The ministry also said that vehicles will eventually start operating according to Euro VI gasoline standards. “This will have logistical and financial repercussions at gas stations but it will happen gradually and not immediately,” Abi Khalil said.
Reported by Yassmine Alieh
Date Posted: Jun 26, 2018
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