A gas station is out of service during an open strike in Beirut, on Nov. 28, 2019. The Lebanese Syndicate of Gas Stations Owners announced Wednesday that it will start an open strike on Thursday because of its huge losses caused by the increase in the price of the U.S. currency to the Lebanese pounds, the National News Agency. (Photo by Bilal Jawich/Xinhua)
BEIRUT, Nov. 27 (Xinhua) -- The Lebanese Syndicate of Gas Stations Owners announced Wednesday that it will start an open strike on Thursday because of its huge losses caused by the increase in the price of the U.S. currency to the Lebanese pounds, the National News Agency.
Gas stations in Lebanon are losing money because they are buying fuel from oil importing companies by paying in U.S. dollars while they are selling it to clients in Lebanese pounds. Meanwhile, gas stations' owners need the U.S. dollars because they pay their suppliers with the U.S. currency.
The uncertain financial situation in Lebanon prompted banks to be reluctant in issuing U.S. dollars, causing gas station owners to go to currency exchange offices that have been charging over 1,800 Lebanese pounds for one dollar, which is higher than the fixed official exchange rate of 1,507.
Gas stations' owners had previously proposed that they pay to oil importing companies with Lebanese pounds since gas stations owners are paid by clients in Lebanese pounds and the central bank would secure U.S. currency for oil importing companies at the official rate.
However, the central bank failed to secure U.S. dollars for oil importing companies.
