BEIRUT, Nov 16 (NNN-NNA) – Lebanese Energy Minister, Nada Boustani, said that, the government will start importing part of the fuel, consumed in Lebanon.
“The government will start importing fuel oil, since oil importing companies are no longer capable of satisfying local market’s needs, because they cannot secure enough U.S. dollar to import the needed volume of the commodity,” Boustani said.
Lebanon has been facing shortage in U.S. dollar currency, due to economic slowdown and the drop in cash injections from Lebanese abroad, which have reduced the central bank’s foreign currency reserves.
The demand for dollar has created a parallel market, in which the dollar is selling on the black market at 1,600 Lebanese pounds, which is higher than the official exchange rate.
As a result, importers of some basic products, such as, fuel, medicine and wheat could not secure enough dollars at the regular exchange rate, to pay for their imports.
Importers of basic commodities will have to pay higher for their imports, if they succeed in securing their U.S. dollar needs, from currency exchange companies.
This prompted the Central Bank to issue a circular, aimed at securing dollar funding for the imports of gasoline, wheat and medications.
However, the problem was not totally solved and importers could only secure 85 percent of their dollar needs.
Boustani said, the government will import part of the market’s fuel needs, which will allow consumers to buy gasoline at regular prices.– NNN-NNA