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Morning Brief

Fuel tanker explosion, subsidies’ fate, cabinet talks to resume: What to know today

Here’s what happened over the weekend and what to expect today, Monday, Aug. 16

Fuel tanker explosion, subsidies’ fate, cabinet talks to resume: What to know today

Lebanese Army soldiers inspect the site of a fuel tanker explosion in the village of Tlayl in Akkar, North Lebanon. (Credit: Fathi Al-Masri/AFP)

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Lebanon is observing a national day of mourning today after 28 people were killed when a fuel tanker exploded in North Lebanon in the early hours of Sunday. The explosion, which took place in the Akkar village of Tleil, also left dozens injured, with many suffering severe burns. Many of the victims were reported to be soldiers in the Lebanese Army. Hospitals already struggling amid serious drug and fuel shortages scrambled to cope with the influx of victims. The Lebanese Army said in a statement that the explosion took place at approximately 2 a.m. and that its members had seized the tanker so that its contents could be distributed to local residents. The army did not say what caused the blast; it did however make two arrests: the owner of land on which the tanker was located and his son. Blaming the tragedy on the circumstances and consequences of extreme fuel shortages across the country, angry protesters yesterday evening gathered in downtown Beirut before storming the house of the Akkar Future Movement MP Tarek Merhebi and attempting to breach Prime Minister-designate Najib Mikati’s property.

Banque du Liban’s governor said the fate of BDL’s decision to end fuel subsidies lies in Parliament’s hands. In a radio interview broadcast Saturday, Riad Salameh made clear that the central bank could not continue to support fuel subsidies without dipping into its mandatory reserves — 14 percent of the dollar deposits that the bank must keep at BDL to safeguard the financial system — and that to do so would require a parliamentary directive. As demonstrators intermittently blocked roads across the country on Saturday to protest the lack of fuel available for sale, President Micheal Aoun, who on Thursday had asked Salameh to rescind his decision to remove fuel subsidies, sent a letter to Parliament asking MPs to convene to take appropriate action regarding the financing of fuel imports. Meanwhile, the General Directorate of Oil announced that BDL had agreed to finance the stockpile of fuel currently held by importers at the exchange rate of LL3,900 to the US dollar — a move expected to somewhat alleviate the fuel crisis, if only for a few days.

After sounding a terrifying alarm over dwindling diesel stocks on Saturday, one of the country’s foremost university hospitals yesterday said disaster had been staved off — for now. In a statement released Saturday afternoon, the American University of Beirut Medical Center warned that it only had sufficient diesel to run its power-supplying generators until Monday, saying that when the stock ran out some 40 adults and 15 children presently on respirators at the facility would immediately die. While the private hospitals syndicate has in recent weeks repeatedly warned of the dire repercussions of diesel shortages at medical facilities that, in the near total absence of a state power supply, rely on generators keep both the lights on and patients alive, AUBMC’s statement was unusual in its blunt articulation of the immediate impact of a total blackout. Yesterday, however, a representative of the facility told L’Orient Today that enough fuel had been sourced to keep the hospital running for five days. But, he warned, “This is a very short term solution, what we need is a sustainable source of diesel or else the same problem will be back.”

Hassan Nasrallah yesterday evening said his Iran-backed party will begin importing fuel from Iran. The Hezbollah chief’s announcement comes amid severe countrywide fuel shortages, which have caused extended blackouts and brought many motorists and enterprises to a standstill. Nasrallah in June said that Hezbollah would be able to import fuel from Iran while bypassing Lebanon’s central bank to evade US sanctions. Nasrallah said the matter was now settled and that he would announce the timeline of the fuel’s arrival in the coming two to three days. Lebanon in July signed an agreement with the Iraqi government to import 1 million tons of Iraqi fuel oil. However, no official timeline has been given for when the fuel, which would require refinement in order to be compatible with Lebanon’s power stations, will arrive in Lebanon.

Najib Mikati expects to meet Michel Aoun today in Baabda to continue government formation talks. Speaking to a local media outlet after scores of protesters had attempted to storm his Beirut residence yesterday evening, the premier-designate said he would meet with the president today. Taking place on the country’s 371st day without an empowered government, the meeting would be their 10th since Mikati was appointed on July 26 to form the next cabinet. On Saturday, the pair held an unpublicized meeting, our sister publication L’Orient- Le Jour’s political correspondent reported, after which Aoun appeared positive about the prospects of government formation, tweeting: “The path of forming the future government is clear, I hope that white smoke will soon appear.” However, it remains to be seen if and how the political and public fallout from Sunday morning’s deadly explosion in Akkar — over which the country’s ruling elite have already traded accusations of responsibility — will impact cabinet lineup talks. While not disclosing much last night on the outlook for talks, Mikati did concede, “It is difficult to please everyone.” 

Want to get the Morning Brief by email? Click here to sign up.Lebanon is observing a national day of mourning today after 28 people were killed when a fuel tanker exploded in North Lebanon in the early hours of Sunday. The explosion, which took place in the Akkar village of Tleil, also left dozens injured, with many suffering severe burns. Many of the victims were reported to be soldiers in the...