Lebanon’s labor syndicates and unions threatened on Monday to take to the streets if the Central Bank (BDL) stops subsidizing basic goods, including fuel oil, medicine, and wheat.
“We hold the caretaker government responsible for any decision to stop subsidizing basic goods, particularly fuel oil, because this step would be the spark to ignite the country,” the Land Transport Union said Monday.
Last week, BDL Governor Riad Salameh said he can no longer exhaust the remaining foreign currency reserves to subsidize fuel oil, wheat, and pharmaceutical products in a few months.
“I informed the government not to use BDL’s compulsory reserve in foreign currencies for the purpose of subsidies. We can continue supporting fuel, wheat, and medicine for another two or three months at an exchange rate of LL1,500 against the dollar,” he said.
In a press conference held by the heads of the relevant sectors from the land transport sector federations and unions, head of the land transport sector federations and unions Bassam Tlais said that lifting the subsidies on goods, foodstuffs, fuel, medicine, and wheat would lead to a major social explosion.
“The lifting of subsidies on gasoline and diesel will raise the price of a gasoline plate to 70,000 Lebanese pounds (today its price is about LL25,000) and diesel to between 45 and 50 thousand pounds, which will lead to a social disaster in light of the difficult economic conditions the country is going through,” he said.
Tlais stressed that according to the information available to him, the beginning of the lifting of subsidies on gasoline will be the end of this month.
He warned the government not to take this step because it will be the spark to ignite the country.
For his part, President of the General Labor Union, Bechara Asmar, said, “As soon as any step to lift support is announced, we will immediately take to the streets, because what is happening is unacceptable and is a call to displace the Lebanese people.”
He said the Unions will not agree to the decision to lift the subsidy.
Last August, an official source told Reuters that Lebanon's central bank will only subsidize fuel, wheat, and medicine for three more months.
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