Gasoline price rose by 608% in just 1 year
The price of 95-octane gasoline reached LBP 174,300 on Friday, September 17, 2021, rising year on year by LBP 149,700 or 608%.
Yet, if subsidies are fully lifted, the U.S. dollar is pegged at 15,000 LBP and global oil prices are stabilized, the price of gasoline can will be LBP 214,200.
As shown in the following table:
- The customs duties and domestic consumption fee have stabilized at LBP 5,600.
- The station owner’s commission has gradually increased from LBP 1,900 in December 30, 2020 to LBP 3,000 in March 26, 2021, LBP 4,000 in July 1 and LBP 6,000 in September 17. Gas station owners are demanding an increase in their commission, which constituted 7.7% of the selling price when it was LBP 1,900 and has declined to 3.4%. For them, the fair share should range between LBP 10,000 and LBP 14,000 per can.
- The freight and distributor’s share has increased from LBP 840 in September 16, 2020 to LBP 1,540 in June 23, 2021 and LBP 2,240 in August 31, 2021.
- In dollar terms, the price of gasoline can has increased from USD 7 in September 2020 to USD 12 in September 2021.
- When the gasoline price was subsidized at the rate of LBP 1,515 by 90%, the non-subsidized 10% equaled LBP 3,800. It has increased to LBP 13,200 with the rise of dollar exchange rate on the black market.
A table showing the evolution of gasoline price (Sep 16, 2020-Sep 17, 2021).
Source: Information International, based on the Ministry of Energy and Water’s pricing tables.