The fuel shortages resulting from Lebanon’s two-year economic crisis came to a head last March.
Lebanese motorists sleep outside petrol stations in the hope of buying less than half a tank of fuel. Fights erupt regularly as tension runs high.
The country’s struggling state-run power stations, which mainly rely on fuel oil, can produce only a few hours of electricity a day. The rest of the time, people turn to private generators, but there is rarely enough diesel to run them.
Most of Beirut has had no power at night since earlier this summer. Businesses and hospitals have had to close or reduce operations.
The main reason for the shortages is that Lebanon’s central bank restricts imports of subsidised fuel because it is running out of money.
Fuel importers and petrol station owners say the central bank limits imports to two ships a month. They accuse it of being deliberately slow to approve lines of credit.
Fuel-laden ships wait – sometimes for days – at Beirut port before being able to discharge.
The bank and energy ministry have repeatedly ignored The National’s requests for clarifications.
If you don’t find fuel in a station, how come you can call someone to bring you gallons which cost twice the official price? The commodity is available in the reserves of some of those importers and stations
Marc Ayoub,
researcher at the American University of Beirut
The strategy adopted by the central bank has been to gradually lift subsidies over the past year. It is expected that those on petrol prices will soon be removed.
There are no more subsidies on diesel since last week, and it is currently sold at $540 a tonne, said Marc Ayoub, an energy policy researcher at the American University of Beirut’s Issam Fares Institute for Public Policy and International Affairs.
“This is the first time the Lebanese government is pricing a commodity in US dollars,” he told The National.
Another reason for shortages is hoarding by private businesses or individuals to sell at a higher price on the black market or smuggle to neighbouring Syria, where fuel is more expensive and also scarce.
In August, the Lebanese army was deployed to fight illegal fuel sales. It announced the seizure of several hundred thousand tonnes of fuel and diesel, some of which was distributed to locals people and businesses.
But such operations wound down this month. When contacted by The National, the army declined to provide an explanation.
Figures shared by an importer show that imports have not drastically decreased since the beginning of the crisis in 2019, suggesting that fuel exists but is unavailable to the public.
Between January and July this year, purchases of petrol by the private sector were 15 per cent lower than during the same period in 2019. Government purchases of fuel and diesel for power stations dropped by 24 per cent.
The importer blamed smuggling to Syria, a sharp increase in demand for diesel to power private generators caused by the collapse of the state-run grid and the general disruption of the market, which destabilised supply and demand.
But Mr Ayoub accused importers of hoarding the fuel to sell at higher prices when subsidies are lifted. He described Lebanon’s small group of importers as a “cartel” working hand in hand with corrupt politicians.
“If you don’t find fuel in a station, how come you can call someone to bring you gallons which cost twice the official price? The commodity is available in the reserves of some of those importers and stations,” he said.
The importer rejected such a claim, pointing out that oil depots belonging to importers are under the control of Lebanese customs.
“It is hard to manipulate official records published and shared on a daily basis with several public authorities including the energy and finance ministry,” they said.
The government has not presented a clear plan to lift subsidies. But once this happens, prices should, in theory, adjust to the market, ending shortages. Fuel importers will no longer have go through the central bank.
Demand is expected to decrease as prices soar and fuel becomes unavailable to large parts of the population. Nearly 80 per cent of the country is living in poverty, compared with fewer than one third pre-crisis, according to the UN.
Politicians have yet to come up with a solution, despite talking about targeted cash cards for months.
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
UAE currency: the story behind the money in your pockets
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
