The global crisis affected oil prices globally. Oil prices recorded sharp losses at the end of the trading session on Wednesday, March 15th, and US crude closed below $70 levels for the first time since 2021. Brent crude futures also fell by about 4.9%, or $3.76. to $73.69 a barrel.
This decline occurred after the collapse of the US “Silicon Valley” bank, which was the main reason behind the sharp decline in fuel demand caused by the large-scale downsizing of technology companies, along with the reduction of travel expenses by their employees.
Global oil decline
In this context, Lebanon did not have its share of the détente, especially since the decline in world prices was supposed to subside with a decline in the prices of oil derivatives. But it seems that oil also has its own cartels and mafias, as it is not enough that the people’s misfortune lies in its cabinet, which is hidden from view and is in a dying coma. In this country, this decline did not reflect a decrease in the prices of fuel or gasoline in dollars, although the price of a barrel of US crude oil “Brent” decreased in about ten days by about $12, after it was $86 per barrel before the Silicon Valley crisis. The question: “Why were the oil prices in Lebanon not affected by this decline?”
Sami stopped by a gas station, put ten liters of petrol in his car, paid about $10 for it, and left. This means that the price of a can of petrol is sold at stations for $20. A member of the Gas Stations Owners Syndicate, George Al-Barakis, indicated through the “bulletin” that “the price of a can of gasoline today is approximately $18.16.” The question we asked him was, “Why has the price of a can of gasoline not decreased in dollars, while the price of a barrel of oil has fallen?” Due to the collapse of the aforementioned US bank and its impact on global stock prices and stock exchanges 12?
The answer does not come to you in an understandable way from the Brax, as it indicates that “the fuel price table, which includes the import cost, is issued twice a week, every Tuesday and Friday,” and then returns to point out that “we did not witness any decline because there is a margin of 15 per day before we witness the decline.” Emphasizing that “since tomorrow, Friday, we will witness a decrease in the price of gasoline in dollars,” although the margin that the Brax talks about precedes time with the rise of the dollar or with the “smelling of the smell” of the global rise at a record speed.
local petrol price
Well, this is good, but let us go back to the Lebanese reality of hydrocarbons. Three control the market and they are the oil importers, the companies that distribute the oil and the owners of the gas stations. Most of the companies that distribute and the stations are owned by the importing companies. In this context, informed sources indicate through the “bulletin” that “when you ask about the price of a plate that is sold between 18 to 20 $, the answer comes to you that the dollar is rising on the black market, but if the price of a barrel of oil decreased globally by more than 12 $ and the price of a plate of gasoline does not It remains the same regardless of the rise and fall of the dollar in Lebanon. This means that the price of the gasoline can be raised in dollars, and huge profits are reaped from this matter.
The pretext of continuous smuggling?!
The sources again reveal that “the owners of the stations today are entering the repercussions of the rise in the dollar exchange rate on the gasoline plate, and they calculate the costs twice, so they resort to raising prices for employees, electricity, and others. Oil is globally, and the price of gasoline is rising in Lebanon, because smuggling outside the borders still exists.”
Expectations of a global decline in oil more
In turn, the economist, Jassem Ajaka, explains through the “bulletin” the reason for the decline in oil globally, and indicates that it “came as a result of geopolitical tensions between the United States and China on the one hand, and in light of concerns about the issue of oil trading and in what currency the buying and selling will take place in dollars or in a foreign currency.” Another! In addition to the expectation of raising interest in America after the collapse of the “Silicon Valley” bank, and all of this will reduce economic activity and the demand for oil,” wondering about “the reason why this issue is not reflected in fuel prices in Lebanon, specifically gasoline and in dollars.”
So, oil prices are dropping globally, and in Lebanon fuel prices are rising, and the owners of gas stations are justifying today the lack of the upcoming decline by the rise in the dollar exchange rate locally… In fact, we are not talking about a decrease in the lira, but rather the global import price in the green currency, and if it decreased by 3 dollars, we will not say more. Today, this means more than 300,000 pounds at the very least. Can you imagine any profits gained by importers and station owners as a result of this global collapse of oil, which is reflected in an increase in the price of the gasoline plate, in an increase in profits on their pockets, perhaps at a time when the Lebanese need an atom of breath while he is suffocating from the greed and greed of merchants While the responsible ministries are absent, they inform us only of non-existent achievements, because they have no plans, no intelligence, and no “those who grieve”!
