Under July after recording the highest levels of the previous month amid the Lebanese crisis imposed since 2019 and the global energy crisis, the price of petrol rose again to pounds yesterday, although the people of oil and gas did not change, according to the index. published by the Ministry of Energy and Water.
The 95- and 98-octane 20-liters took 14,000 pounds from what was originally issued on Tuesday, to 605,000 and 617,000 pounds respectively — up from about 700,000 pounds at the end of June. The main reason for the rebound shown so far is not related to the purchase price of the Sayrafa platform of the Banque du Liban (which remained stable at 25,600 pounds after Tuesday’s increase, against 30,000 yesterday in the market) or the S&P Platt. index used by the industry to track fuel prices. According to the Petroleum Directorate in the Ministry of Energy and many voices among representatives of fuel distributors, the increase in oil prices is due to the change in the coverage ratio of the engine BDL assistance, importers will always benefit. On Tuesday, the agency told the industry that it will only provide 85% of the funds requested by importers to settle their supplier bills for books that have changed prices. Sayrafa. The importers will provide the remaining 15% themselves at the market price, on the model of what was done before March 24 last (including prices at the time).
Between being surprised and not being surprised
According to a source in the industry, the BDL did not inform the company about this change, which explains why the fees were changed for the first time on Tuesday. The price of 20 liters of diesel sold at the pump remains at 647,000 pounds (-18,000 compared to the last change). A 10 kg cylinder of domestic gas costs 311,000 (-16,000 pounds) and a kiloliter of heating oil costs 1,047 dollars (-16 dollars – not including current transportation costs such as current market at 517,000 pounds per kiloliter). “Besides the times of high price and no change of exchange, the two prices are changed every week, Tuesday and Friday,” recalled the aforementioned source. The Banque du Liban, whose central council met yesterday, did not make a statement on the subject. The new agreement on the ratio of funds received in the Sayrafa rate was welcomed with caution by some representatives of the fuel sector. When asked, the president of the association of owners of service buildings, Georges Brax, said that he was not surprised by the change in the ratio, which he said had been “anticipated for several days and in negotiations from at least Monday”. Speaking to the el-Nashra group, the representative of the fuel distributors, Fady Abou Chacra, on his part confirmed that the distributors have not been identified. “No one knows anything about anything,” he insisted, before saying that the necessary funds must be given “five days in advance” in order to prevent equipment problems and the return of lines. problems that have faced the country since the beginning of the crisis.
The anonymous importer said that the change in the ratio will not affect when the company adjusts the prices in pounds at the market price, which grows by the day, although Sayrafa will be updated. evening. “Yesterday’s prices were calculated based on 500 pounds lower than the day before,” he regretted. Asked about the risk of changing the ratio to increase pressure on the currency and derailing the market price, the source in the industry believed that it would be limited, while the oil only fuel is provided.
Abduction is not known
The manager of an anonymous distribution company believes that some import companies are suspending the import of fuel “while waiting to know more”, which is the decision of one of the agencies service to close “or lose money”, while waiting for the price to rise again, driven by the price of sales and/or consumption oil prices. Note that the price has fluctuated between 28,000 and 30,000 since the beginning of July, but the opacity of the market makes any projection difficult. The oil level, the barrels of Brent and WTI are trading yesterday at around 105 and 96 dollars. Although they are less than 20% compared to their heights in June, they are growing in an uncertain environment, marked by the Russian-Ukrainian conflict. Finally, it is difficult to measure the volume of oil exports to Syria, because the margins fell significantly when the Banque du Liban supported this fuel (the price of about 1,500% in the end. of June 2022 year-on-year according to International Information), but it seems that it is possible to make money in some way.
In Lebanon, the purchase price of 20 liters of oil is between 20 and 21 dollars according to yesterday’s limits. In Syria, according to a source who lives there, Syrians with a car are entitled to 25 liters of gasoline per week, for a price of 7 dollars ( 5.6 dollars for 20 liters). If they have two cars, they can get an extra 25 liters per week for $22 ($17.6 for 20 liters). In addition to these quantities, 25 liters of oil sold on the black market for 35 dollars (that is. During the conflict, Syria was recognized by the United States and part of the international community, while Lebanon still hosts more than one million Syrian refugees.
Under July after recording the highest levels of the previous month amid the Lebanese crisis imposed since 2019 and the global energy crisis, the price of petrol rose again to pounds yesterday, although the people of oil and gas did not change, according to the index. published by the Ministry of Energy and…