State Mulling to Fix Fuel Prices as Oil Tumbles World Wide
The Lebanese state will reportedly fix fuel prices amid the insistence of major crude producers to maintain output levels despite an oversupply.
The weekly update of fuel prices witnessed yet another drop on Wednesday on gasoline prices.
Gasoline prices dipped by LL200, gas dropped by LL900 and diesel and kerosene by LL800.
The price of 95-octane rated fuel now costs LL22,200, while the 98-octane rated fuel is selling at LL22,800 after Wednesday's dive.
The state is aiming at fixing gasoline prices to avoid any further plunge and its impact on the economy.
A source told al-Joumhouria newspaper on Wednesday that the fuel prices in Lebanon could reach LL15,000 if the state didn't take the necessary measures to fix the prices.
On Tuesday, oil companies and gasoline stations demanded the state to increase its profit margin by LL400.
Negotiations kicked off with Energy Minister Arthur Nazarian over the matter as oil suppliers called for fixing gasoline prices at LL25,000.
The country has been witnessing in the past few weeks a plunge in fuel prices, which is affected by a world wide drop.
U.S. benchmark West Texas Intermediate (WTI) for February delivery was down 58 cents at $45.31 a barrel in afternoon trade and Brent crude for February dropped 54 cents to $46.05.
Crude prices were already on the decline after peaking above $100 a barrel in June, but the fall accelerated from November 27 when the Organization of the Petroleum Exporting Countries decided to maintain output levels.
H.K.
D.A.
Source: Agence France Presse
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