Fuel prices expected to go up sharply in Lebanon on Friday

BEIRUT, Aug 21 - Lebanese fuel prices are expected to go up sharply after the government decided to price it to 8,000 pounds to the dollar from the previous level of 3,900, officials said in a bid to ease crippling fuel shortages.

New Central bank governor Riad Salameh told Reuters the bank's Sayrafa platform would provide dollars for fuel imports at its market rate, which was 16,500 on Friday, a little below the cash market rate of around 19,000.

He said the difference between the Sayrafa rate and the 8,000 level would be a loss to be carried by the Government.

A statement issued after a meeting between Salameh, President Michel Aoun and other government officials said that the central bank would be opening a temporary account up to a maximum of $225 million by the end of September to cover the subsidy.

The move was to cover urgent and exception subsidy for gas, fuel oil and cooking gas, it said.