Rumors Of Ending Subsidization Spark Fears Of Pricey Fuel In Lebanon
In a proposal presented by the Minister of Economy Raoul Nehme, details of lifting the governmental subsidy on combustibles (diesel fuel and gasoline) were revealed as part of a plan to end the smuggling of fuel across borders and to ease the government’s financial strains.
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In the proposal, Nehme recommends lifting the subsidy as soon as August 1st, 2020 wherein fuel vouchers would be given to public transportation drivers, and distributors would purchase the fuel through banks using Lebanese Lira.
One major concern critics of this proposal have is that in an effort to stop fuel smuggling and stabilize the Lira, 20 liters of fuel is expected to hit at least 50,000 LL, a far cry from the current 23,500 LL we pay. Additionally, diesel for generators is also expected to get way more expensive, only further burdening the already drowning Lebanese citizen.
The proposal also suggests lifting the subsidy on bread. You can read the full proposal below:
