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Fuel sector unions demand higher profit margins following lowered BDL subsidies

Fuel sector unions demand higher profit margins following lowered BDL subsidies

Cars line up, waiting for their turn to fill up fuel at a Wardieh gas station in Saida. (Credit: Muntasser Abdallah)

BEIRUT —Representatives of several fuel sectors on Wednesday demanded an increase in the profit margin granted to them in the tariffs set by the Ministry of Energy, the National News Agency reported.

Here’s what we know:

    • Representatives from the Gas Station Owners’ Syndicate and the Syndicate of Tanker Owners and Fuel Transport Contractors, as well as a number of station owners said in a joint statement that the Ministry of Energy should “increase the US dollar profit margin” so they can continue their operations. They also criticized the delay in the ministry’s publication of tariffs, “which leads to a delay in the delivery of fuel to stations and therefore to problems with customers.”

    • The government sets the prices for fuel, which in the past have been criticized for being disadvantageous to distributors and gas station owners.

    • If solutions are not found immediately, the owners of service stations “will be forced to take measures,” Wednesday’s statement noted.

    • Gasoline is still partially subsidized, with 55 percent of its price covered at the rate of the central bank’s Sayrafa platform, which is lower than that of the parallel market. The remaining 45 percent is paid in US dollars. The parallel market rate stood on Wednesday at LL33,900 per dollar, against LL27,200 on Sayrafa platform.

    • The Ministry of Energy published new fuel prices Wednesday morning, with gasoline increasing slightly by LL1,000, while diesel for vehicles and fuel oil experienced a more significant increase. 

BEIRUT —Representatives of several fuel sectors on Wednesday demanded an increase in the profit margin granted to them in the tariffs set by the Ministry of Energy, the National News Agency reported.Here’s what we know:     • Representatives from the Gas Station Owners’ Syndicate and the Syndicate of Tanker Owners and Fuel Transport Contractors, as well as a number of station...