BEIRUT – Lebanon’s army on Saturday raided gas stations and seized petrol to curb hoarding as the central bank chief stood firm on his decision to halt fuel subsidies.
Lebanon is gripped by one of the world’s worst economic crises since the 1850’s, according to the World Bank, and is struggling with fuel, bread and medicine shortages.
On Wednesday central bank chief Riad Salameh said he would halt state subsidies on fuel imports to ease pressure on the bank’s dwindling foreign reserves, sparking panic across the country.
Salameh insisted on Saturday he would not back down from his decision without a parliamentary vote, saying foreign reserves had fallen to $14 billion.
“I will not review the removal of subsidies on fuel unless the use of compulsory reserves is legalised” by a parliamentary vote, he told a local radio.
The Lebanese pound has lost more than 90 percent of its value on the black market, and 78 percent of the population lives below the poverty line.
Crippling shortages of fuel and power cuts lasting more than 22 hours per day have left many businesses and homes without the diesel needed to power private generators, plunging the country into darkness.
They have also caused giant queues at petrol stations that are rationing gasoline supply, allegedly because of low stock.
Fuel importers blame the crisis on a delay by the central bank in opening credit lines to fund imports.
Salameh denied those charges on Saturday, accusing importers and distributors of holding back fuel to sell it higher prices in the black market, or across the border in Syria.
“The importers are to blame,” Salameh said, accusing them of squandering $820 million the lender had fronted for three months of imports.
Army deploys
To stem hoarding, the army on Saturday said it was raiding closed gas stations to seize gasoline and distribute it “free of charge” to the people.
It shared pictures and video footage on its social media pages showing soldiers working pumps at gas stations and filling up car tanks.
An AFP correspondent saw soldiers deployed at several gas stations north of Beirut, where hundreds of vehicles had been queueing for long hours to fill up on petrol.
Video footage posted online showed motorists cheering as the army raided gas stations.
But some Lebanese remained bitter.
“The army’s decision is too late,” said one motorist who had been waiting for hours in the simmering heat.
After the army’s deployment, many petrol stations across the country reopened after closing for several days.
The police also announced Saturday they would dispatch patrols to gas stations believed to be hoarding fuel and confiscate it.
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