Written by: Salma Al-Saqqa
Global oil markets are witnessing a state of sharp volatility due to escalating security tensions in the region, accompanied by risks threatening navigation in the Strait of Hormuz and Bab al-Mandab, in addition to the targeting of Saudi oil facilities. These developments raise growing concerns about supply disruptions and the high cost of transportation and insurance, factors that are reflected in one way or another on fuel prices in Lebanon depending on the movement of refined derivatives globally and the currency exchange rate.
In this context, the representative of fuel distributors, Fadi Abu Shaqra, explained that the issued fuel price schedule recorded a noticeable decrease in the price of a gasoline canister, parallel to an increase in the price of diesel. He pointed out that the price of a gasoline canister fell by about 53,000 Lebanese pounds to reach 2 million and 686 thousand pounds, equivalent to about $29.94, after recording higher levels in the previous schedule.
Disparity in crude oil and refined derivatives movement
Abu Shaqra pointed out that the price of diesel took an opposite direction, recording a slight increase to reach 2 million and 564 thousand Lebanese pounds, an increase of nearly 20,050 pounds. These developments come at a time when the global economy is going through a state of stagnation and a decline in crude oil prices, which touched about $115 per barrel, explaining that the prices of refined petroleum derivatives do not necessarily move along the same path as crude oil.
The fuel distributors' representative confirmed that gasoline and diesel prices are influenced by specific factors and factors related to global markets for refined derivatives, stressing the importance of recognizing these differences. He concluded by confirming that the decline in gasoline prices reflects positively on citizens and contributes to alleviating part of the living burdens placed upon them.
