Draft Law Being Mulled to Allow BDL to Continue Subsidizing Fuel

There are discussions aimed at preparing a draft law that would allow the central bank to continue subsidizing fuel imports following the bank’s latest controversial decision to halt subsidies, a ministerial source told the Asharq al-Awsat newspaper.

President Michel Aoun had warned Thursday in a Baabda meeting in the presence of Central Bank Governor Riad Salameh that the latter’s decision would have “dangerous social and economic repercussions that would affect all sectors.”

Aoun also asked Salameh to abide by the government’s decision that linked the end of subsidization to the approval of the so-called ration card and “allowed the central bank to use the obligatory reserves to open lines of credit for the purchase of fuel at a rate of LBP 3,900 for the dollar instead of LBP 1,500.”

Salameh meanwhile stressed that he has no funds and that any use of the obligatory reserve would require a special law.

A ministerial meeting chaired by caretaker PM Hassan Diab meanwhile stressed that the prices of fuel should not witness any changes, adding that gasoline and diesel should be distributed to gas stations according to the latest memo issued by the caretaker energy minister.