The Association of Petroleum Importing Companies in Lebanon (APIC) told L'Orient-Le Jour on Monday that companies transporting imported fuel to Lebanon imposed an increase in risk premiums, which is expected to result in an additional $0.60 on the price of 20 liters of gasoline, and $0.70 on the price of diesel.
APIC said that it is currently in discussions with the Ministry of Energy and Water to have these additional costs factored into the scheduled fuel price updates on Tuesday.
This would mean an increase of between 50,000 and 60,000 Lebanese pounds on the price of 20 liters of gasoline or diesel at the current exchange rate of 99,500 Lebanese pounds to one U.S. dollar.
APIC assures that the delivery schedule has not been altered. Last week, at least one fuel tanker bound for Lebanon temporarily halted its journey in Cyprus due to security risks.
On the front of food imports, "the situation has not changed so far, but it is very likely that shipping companies delivering to Lebanon will increase risk premiums in the coming days," said Hani Bohsali, president of the union representing importers of these goods in Lebanon, to L'Orient-Le Jour.
He added, "If such a decision is made, it will undoubtedly affect all other countries in the Eastern Mediterranean, including Cyprus," referring to the regional dimension of the conflict between Hamas and Israel.
He concluded that some insurers notified importers that they are suspending war risk coverage clauses in insurance policies in favor of a case-by-case approach.