Fuel consumption has fallen this year compared with last year. (Credit: João Sousa/L’Orient Today)
BEIRUT — The average amount of fuel consumed daily in Lebanon dropped 14 percent in the first seven months of 2022 compared to the same period of the previous year amid a deepening economic crisis that saw fuel prices rise around fivefold since August 2021, according to a study conducted by Beirut-based research center Information International.
Amid a continuous rise in fuel prices, the price of 20 liters of 95-octane gasoline reached LL592,000 Wednesday, compared to LL129,000 on Aug. 22, 2021, a LL463,000 difference, or a 358 percent increase.
This significant rise in prices led to a decline in consumption. According to the study published by the research center on Monday, the average daily consumption in 2021 stood at 328,000 liters per day, but decreased to 281,000 liters per day this year — a decline of 47,000 liters, or 14.3 percent.
The research center predicts further decline in fuel consumption in the event of further fuel price increases, the complete lifting of gasoline subsidies or a further rise in the dollar to lira exchange rate on the parallel market.
Long queues for gas re-emerged Monday at many gas stations across the country, in light of the depreciation of the Lebanese lira which further plummeted over the weekend. The national currency is now trading at around LL34,000 to the dollar on the parallel market.
Gas station owners’ syndicate spokesperson Georges Brax said in a statement Monday that the central bank is in the process of gradually lifting subsidies on gasoline, adding that an adjustment to the terms of payment for imports took place, increasing the dollar exchange rate for imported gasoline.
According to Brax, Banque du Liban will now be securing only 55 percent of gasoline prices at the BDL’s Sayrafa rate, which as of Tuesday stood at LL27,200, while 45 percent of the US dollars will be paid at the parallel market rate. Importers were last making 70 percent of each payment at the Sayrafa rate.