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Hezbollah-mediated Iranian fuel arrives in crisis-affected Lebanon | Business and Economic News

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Beirut, Lebanon – A Hezbollah spokesperson told Al Jazeera that the first convoy of trucks carrying Iranian fuel had arrived in Lebanon from Syria – this cargo was designed to help alleviate the severe fuel shortage. Terrible economic crisis.

According to Hezbollah’s Al Manar TV channel, the first batch of fuel was transported by two convoys, totaling 40 trucks, and arrived in Lebanon on Thursday.

The Lebanese group with ties to Iran described fuel delivery as a huge boost to the country that is short of funds. However, these goods violated U.S. sanctions on Iranian oil sales and received mixed reactions in Lebanon.

Earlier this week, the first of four Iranian tankers docked at the port of Baniyas in Syria.

Tanker Trackers, an oil export monitoring agency, said that the cargo of the four tankers contained a total of 33,000 metric tons of gasoline, and 792 trucks were needed to transport all of the cargo to Lebanon. Urgent need for fuel.

Lebanon’s energy crisis is the result of an economic collapse that has destroyed the country since 2019. The value of the Lebanese pound has plummeted by about 90%, and about three-quarters of the population lives in poverty.

The power outage has plagued Lebanon for months. The state has been struggling to provide more than a few hours of electricity a day, and households often struggle to afford the soaring cost of private generators and ensure that diesel fuel can run.

The hospitals in Lebanon are in Critical situation Because they work hard to get enough fuel to keep the lights on and the equipment running properly.

Hezbollah Secretary-General Hassan Nasrallah said in a speech earlier this week that he would donate Iranian fuel for one month to public hospitals, the Lebanese Red Cross, the Civil Defense Forces and orphanages.

Private hospitals, bakeries, pharmaceutical factories and other institutions can use Lebanese pounds to buy fuel at a lower price. Nasrallah said that they have not yet determined the price, but said that the price is very affordable and not for profit.

For safety reasons, Qassem, a private generator distributor, told Al Jazeera that his company is working hard to pay for generator maintenance and fuel costs, and he is willing to buy Iranian fuel from Hezbollah.

“We are waiting to see how Amana will set prices,” Qasim said, referring to Hezbollah affiliates organizing distribution.

The United States, which designed Hezbollah as a “terrorist” organization, has sanctioned Amana because of its ties to the party.

Although the Iranian tanker did not call Beirut, Lebanon may face the risk of sanctions given that the fuel is funded, transported and distributed through entities sanctioned by the United States.

Neither Lebanese nor US officials commented on Thursday’s delivery.

Qasim claimed that his decision to buy fuel was not out of political motives, but out of despair.

“We have no choice but to make decisions that reduce the burden on us and our citizens,” Qassim said.

Charaf Abou-Charaf, head of the Lebanese Medical Association, said that these goods will not solve the problems behind the crisis, but they can give the Lebanese people some breathing space.

“This will definitely relieve some of the pressure on the hospital and make their work smoother,” Abou-Charaf told Al Jazeera.

“But I think the problem is removing subsidies and getting hard currency so we can buy fuel.”

The Central Bank of Lebanon announced in June that it would Stop spending about $3 billion a year Regarding fuel subsidies. The announcement caused shocks throughout the economy and encouraged distributors to hoard inventory in case they could sell them at higher prices in the future.

The subsidy allows importers and distributors to sell fuel at the official fixed exchange rate of 1,500 Lebanese pounds to the U.S. dollar. But as the value of the pound plummeted, fixed interest rates were replaced by informal interest rates in the wider market. Economists and analysts say that retaining subsidies will eventually stimulate smuggling, especially into Syria, for profitable sales.

But experts criticized Hezbollah’s lack of transparency in fuel transactions as another piecemeal solution to the structural crisis.

Jessica Obeid, an independent energy policy consultant, told Al Jazeera: “These are quick solutions to maintain power, but they cannot solve the problems in the power sector.”

“The question is not where we get fuel or electricity from, but how we will pay for it.”

She said that Iranian fuel will not change the rules of the game in meeting growing demand, and it aims to increase the reputation of Hezbollah.

“This is politics [points] Score,” she said.

Obaid said that if the authorities need to focus on restructuring its energy sector-due to expensive subsidies and bloated labor, critics say this is one of the most ineffective and costly institutions in Lebanon, and it is part of the political asylum network of Lebanese parties. .

Obaid said: “If you pay high electricity bills, you can’t have a prosperous economy,” Obaid said, adding that officials did not focus on technological solutions when drafting policies, but only on “power and power”. vested interest”.

“But the longer this situation lasts, the greater the price paid by the Lebanese people.”

‘Everyone is suffering’

Last week, Lebanon finally formed a new government after 13 months of political quarrels and sectarian transactions. Prime Minister Najib Mikati and ministers have prioritized resolving the country’s fuel crisis, but there is no clear timetable for when or how it will happen.

Hezbollah’s fuel arrived before the government delivered the goods agreed with Iraq.

On Sunday, the then Caretaker Energy Minister Raymond Ghajar announced that the first batch of Iraqi fuel was scheduled to arrive sometime this week, which would allow the government to provide several additional hours of national electricity each day.

The Lebanese and Iraqi transaction is an opaque barter transaction, and Iraq will provide high-sulfur fuel oil in exchange for goods and services. However, due to the incompatibility of high-sulfur fuel oil with the country’s power plants, the Lebanese government chose Dubai’s ENOC in the tender to exchange goods with compatible fuels.

At the same time, the Iranian shipment put others in a dilemma, including Dr. Georges Juvelekian of Beirut’s St. George’s Hospital.

Private hospitals have not yet expressed their stance on whether they will buy Iranian fuel from Hezbollah, fearing that they may violate sanctions, be favored by Hezbollah, or even lose the trust of their customers.

“Patient care comes first, and as doctors, we need to prioritize our ability to take care of them,” Juvelekian told Al Jazeera.

“But in the final analysis, there is no substitute for good governance. And, by the way, everyone in Lebanon is suffering, regardless of their affiliation.”



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