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Renewed Gasoline Shortage Crisis in Lebanon

Jul 23

Renewed Gasoline Shortage Crisis in Lebanon

Motorists queued at fuel stations across the country on Wednesday amid a renewed gasoline and diesel shortage crisis linked to the scarcity of U.S. dollars in the country.

TV networks said some gas stations were operating normally as others either closed or were rationing the sold quantities.

The companies that import fuel have blamed the crisis on difficulties they are facing in opening letters of credit at commercial banks as per the exchange rate subsidization mechanism set by the central bank for the import of fuel, wheat and medicine.

'Most major banks are no longer accepting to open letters of credit as easily as before due to liquidity problems,' LBCI TV quoted the firms as saying.

'The companies said that two shipments will arrive this week to cobtribute to a partial solution to the problem,' the TV network added.

A spokesman for fuel distribution companies said there are contacts aimed at 'relieving citizens,' noting that 50% to 60% of fuel stations have closed due to the shortage crisis.