Caretaker Prime Minister Hassan Diab on Friday granted extraordinary approval for a decision under which the central bank will subsidize fuel imports at a rate of LBP 3,900 for the dollar instead of LBP 1,500, which will effectively hike the prices of fuel in the market.
Media reports had said that Diab had shown reluctance to approve the move on Thursday, after the decision was taken at a Baabda meeting chaired by President Michel Aoun.
In a statement issued Friday, Diab said his approval aims to “secure fuel for citizens for the three coming months, especially that we are on the verge of a summer tourism season that will lead to a surge in the foreign currencies that will enter Lebanon with the arrival of expats and tourists.”
He added that his approval comes after he agreed with President Michel Aoun on a “new format.”
The move is expected to ease a major fuel shortage crisis that Lebanon witnessed in recent weeks.