BDL Strike Threatens to Spark Fuel Crisis
The Syndicate of Gas Station Owners in Lebanon warned Monday of a fuel shortage crisis in connection with the open-ended strike declared by the central bank's employees over proposed cuts to their benefits.
A statement issued by the syndicate said fuel distribution companies have asked station owners to "pay in cash and in US dollar due to the strike of Banque du Liban's employees and the suspension of the check clearing operations between banks."
The syndicate also noted that owners are not being able to change their cash from the Lebanese lira to the US dollar due to the ongoing strike and a dollar shortage in the market that has been running for several weeks.
And urging distribution companies to accept checks "because they will be cashed sooner or later," the syndicate warned that the country will be plunged into a "real fuel supply crisis" should the distributors continue their "intransigence."
The syndicate also warned that it may stage a general strike and halt the sale of fuel to customers.
Central bank employees say they are protesting a decision to slash their benefits as part of a new austerity package being studied by Cabinet ahead of this year's budget.
Other public sector employees have resorted to similar measures against possible austerity measures in recent weeks.
Cabinet met on Monday to discuss the package.
Lebanon has vowed to slash public spending to unlock $11 billion worth of aid pledged by international donors during an April 2018 conference in Paris.
Last month, Prime Minister Saad Hariri vowed to introduce "the most austere budget in Lebanon's history" to combat the country's bulging fiscal deficit, sparking fears among public sector employees that their salaries may be cut.
Lebanon is one of the world's most indebted countries, with public debt estimated at 141 percent of GDP in 2018, according to credit ratings agency Moody's.
Source: Naharnet
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