Why are fuel prices in Lebanon declining despite rise in dollar exchange rate?

Lebanon Economy
2022-12-09 | 04:39
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Why are fuel prices in Lebanon declining despite rise in dollar exchange rate?
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Why are fuel prices in Lebanon declining despite rise in dollar exchange rate?

 The decline in oil prices in international markets had the greatest impact on limiting the rise in fuel prices in Lebanon despite to the continuous rise in the dollar exchange rate and its crossing the threshold of 42,000 Lebanon Liras to the dollar.

 

George Brax, member of the Station Owners Syndicate, explained that less than a month ago, the price of a barrel of Brent crude exceeded 96 dollars; now, it has dropped to 76 dollars.

 

He added that the demand for oil in the international markets is still at its lowest level due to the global economic downturn, despite the decision of OPEP+ to continue the policy of reducing its production and easing the COVID-19 quarantine policy in China.

 

In Lebanon, a new table was issued on Friday for fuel prices. Despite the increase in the dollar exchange rate by 700 Liras, fuel prices declined due to the decrease in the price of imported gasoline and diesel fuel.

 

Thus, the price of the 95-octane gasoline decreased by 15,000 Liras to reach 766,000 Lira. 

 

The diesel decreased by 11,000 Liras to reach 813,000 Lira. In contrast, gas rose by 3,000 Liras to become 469,000 Lira.

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