Lebanon president says treasury to bear cost of fuel subsidies

BEIRUT: Lebanese President Michel Aoun said the government treasury will bear the cost of the continuation of fuel subsidies that was decided on Saturday.

The central bank said earlier that the government had decided to raise the exchange rate used to price fuel to 8,000 pounds to the dollar from the previous level of 3,900 to the dollar, effectively increasing fuel prices. The new exchange rate set for fuel imports remains, however, below the market rate of about 19,000 pounds to the dollar, which means a continuation of a policy to subsidise fuel.