Page 6 - DMEA Week 37 2022

DMEA SECURITY & POLICY DMEA

Gasoline prices set to rise in Lebanon after

central bank limits access to US dollars

MIDDLE EAST GASOLINE prices are set to rise in Lebanon fol- indicated that he saw price hikes as inevitable.
lowing the central bank’s decision to stop mak- “If there is more volatility in the exchange rate,
ing US dollars available for import transactions, there will be more volatility in the fuel price,” he
Reuters reported on September 12. told Reuters.
The Banque du Liban (BDL) had said last Chammas also downplayed the possibility of
year that it intended to stop providing US cur- supply and payment disruptions. He stated that
rency at subsidised exchange rates for gasoline Lebanese fuel importers had been able to source
imports, citing the ongoing decline in its foreign all the US currency they needed to continue
currency reserves. Even so, it has continued to bringing gasoline into the country on the black
do so, making dollars available at below-market market and said that he expected local filling sta-
rates on its Sayrafa platform. tions to continue accepting payment for motor
Several weeks ago, however, BDL began to fuel in Lebanese pounds at current black-market
ramp down the volume of US currency offered rates. ™
on the Sayrafa exchange. And now it is set to
bring the figure down to zero within the frame-
work of a wider effort to phase out government
subsidies for a variety of goods.
Under the circumstances, a spokesperson
for the bank told Reuters, gasoline importers
will have no other option but to obtain US cur-
rency on the black market. This is certain to have
consequences for local fuel prices, as the dollar
is currently fetching around LBP35,000 on the
Lebanese black market, a rate that is 25% higher
than the LBP28,000 exchange rate posted by the
Sayrafa last week.
According to Reuters, these consequences
are already becoming evident. As of September
12, the cost of gasoline had already gone up by
the equivalent of LBP1,000 per litre, marking
a significantly higher week-on-week shift than
has been typical.
Maroun Chammas, a member of the Asso-
ciation of Petroleum Importing Companies
(APIC), a group of 14 petroleum product
importers and distributors active in Lebanon, BDL has been ramping down the amount of dollars sold on the Sayrafa (Photo: BDL)

Head of NAPIMS says Nigeria loses

470,000 bpd of oil to pipeline theft

AFRICA BALA Wunti, the group general manager of transportation networks in the southern part of
Nigeria’s National Petroleum Investment Man- the country was having ruinous financial con-
agement Services (NAPMS), says the country sequences. Nigeria is losing about $700mn each
loses about 470,000 barrels per day (bpd) of oil month due to crude theft, he said.
production due to theft and sabotage. Security conditions are particularly dire near
Speaking during a tour of Nigerian National the Bonny terminal operated by the Shell Petro-
Petroleum Co. Ltd (NNPC Ltd) facilities, leum Development Co. (SPDC) joint venture,
Wunti said that the loss of oil from pipeline and he said.

P6 www. NEWSBASE .com Week 37 15•September•2022