BEIRUT: Lebanon’s economy ministry on Tuesday raised the price of subsidized bread for the fifth time in a year as the country’s multiple crises worsen with no resolution in sight.
The ministry said the reason behind the latest increase — an 18 percent hike from the last raise in February — was the central bank’s ending of sugar subsidies, which in turn adds to the cost of bread production.
Lebanon is grappling with the worst economic and financial crisis in its modern history — one that the World Bank has said is likely to rank as one of the worst the world has seen in the past 150 years. The currency has lost 90 percent of its value, breaking a record low earlier this month of 15,500 Lebanese pounds to the dollar on the black market. The official exchange rate remains 1,507 pounds to the dollar.
The World Bank said in a report this month that Lebanon’s gross domestic product is projected to contract 9.5 percent in 2021, after shrinking by 20.3 percent in 2020 and 6.7 percent the year before.
The central bank has been cutting back on financing imports at subsidized dollars, as foreign currency reserves have dropped dangerously low, from $30 billion at the start of the crisis in late 2019, to nearly $15 billion currently. That has prompted merchants to either raise prices or stop imports.
Most Lebanese have seen their purchase power drop and their savings evaporate, and more than half the tiny country’s population now lives below the poverty line.
The government in June last year raised the price of flatbread, a staple in Lebanon, by more than 30 percent — for the first time in a decade. It has since raised the price three times before Tuesday.
The Ministry of Economy says 910 grams (2 pounds) of bread will be sold for 3,250 pounds. It used to be sold for 2,750 pounds before the latest increase.
Lebanon is going through severe shortages in gasoline, medicines — both still subsidized by the state — and other vital products. Electricity cuts last for much of the day and people wait in line for hours to fill up their cars. Shootings and fistfights have broken out at gas stations, leaving several people injured.
One of the reasons behind the gasoline shortage is smuggling to neighboring Syria, which struggles with its own gasoline shortage but where the price is nearly five times that in Lebanon.
A fuel distributors representative, Fadi Abu Shakra, said 140 gas station owners refused to receive gasoline on Tuesday because of the problems they are facing, including threats, blackmail and beatings.
“They cannot protect themselves,” he said, and called on security forces to protect gas stations, according to state-run National News Agency.
Lebanon again raises price of bread amid crippling crisis
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Lebanon again raises price of bread amid crippling crisis
- 18% hike from the last raise in February was after the central bank's ending of sugar subsidies
- Lebanon is grappling with the worst economic and financial crisis in its modern history
Israeli strikes kill dozens in Gaza as US pushes for ceasefire
- US, Qatar, Egypt intensify ceasefire efforts amid ongoing conflict
- Israel says it will not end the war until Hamas is dismantled, hostages free
One of the airstrikes killed at least 10 people in a multi-story house in the Sheikh Radwan neighborhood of Gaza City on Wednesday, while another killed five in the nearby Zeitoun suburb, medics said.
In Deir Al-Balah city in central Gaza, where hundreds of thousands of Palestinians are sheltering, an Israeli airstrike killed three other people.
In Jabalia, where the army has operated for more than three weeks, an Israeli airstrike killed four people, medics said.
On Tuesday, Israeli military strikes killed at least 24 Palestinians across the Gaza Strip, medics said, with two airstrikes hitting tent encampments in Mawasi, to the west of the southern city of Khan Younis, killing 18 people. The dead included several women and children.
There was no comment by the Israeli military on those incidents.
As Israeli continued its bombardments, the US, Qatar and Egypt were making the most intensive effort in months to reach a ceasefire, with one source close to the talks saying this was the most serious attempt to reach a deal so far.
The outgoing US administration has called for a final push for a deal before President Joe Biden leaves office, and many in the region view President-elect Donald Trump’s inauguration on Jan. 20 as an unofficial deadline.
“Things are better than ever before, but there is no deal yet,” the source told Reuters.
But with the clock ticking, both sides accuse the other of blocking a deal by adhering to conditions that have torpedoed all previous peace efforts for more than a year.
On Tuesday, Hamas stood by its demand that it will only free its remaining hostages if Israel agrees to end the war and withdraw all its troops from Gaza. Israel says it will not end the war until Hamas is dismantled and all hostages are free. Hamas also said that Trump was rash to say there would be “hell to pay” unless the hostages go free by his inauguration.
Osama Hamdan, an official with the Islamist group, told a news conference in Algiers on Tuesday: “I think the US president must make more disciplined and diplomatic statements.”
Nearly 46,000 Palestinians have been killed in Israel’s assault on Gaza, according to health officials in the enclave. The assault was launched after Hamas fighters stormed Israeli territory on Oct. 7, 2023, killing 1,200 people and capturing more than 250 hostages, according to Israeli tallies.
EU could lift some Syria sanctions quickly, France says
PARIS: European Union sanctions in Syria that obstruct the delivery of humanitarian aid and hinder the country’s recovery could be lifted swiftly, France’s foreign minister said Wednesday.
The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar Assad’s rule to try to ease the flow of humanitarian assistance.
Speaking to France Inter radio, Foreign Minister Jean-Noel Barrot said the EU could take a similar decision soon without giving precise timing, while adding that lifting more political sanctions would depend on how Syria’s new leadership handled the transition and ensured exclusivity.
“There are other (sanctions), which today hinder access to humanitarian aid, which hinder the recovery of the country. These could be lifted quickly,” said Barrot, who met Syria’s de facto leader Ahmed Al-Sharaa on Friday with Germany’s foreign minister.
“Finally, there are other sanctions, which we are discussing with our European partners, which could be lifted, but obviously depending on the pace at which our expectations for Syria regarding women and security are taken into account.”
Three European diplomats speaking on condition of anonymity said the EU would seek to agree to lift some sanctions by the time the bloc’s 27 foreign ministers meet in Brussels on Jan. 27.
Two of the diplomats said one aim was to facilitate financial transactions to allow funds to return to the country, ease air transport and lessen sanctions targeting the energy sector to improve power supplies.
Syria suffers from severe power shortages, with state-supplied electricity available two or three hours per day in most areas. The caretaker government says it aims to provide electricity for up to eight hours per day within two months.
The US waivers allow some energy transactions and personal remittances to Syria until July 7, but do not remove any sanctions.
Lebanon to extradite son of late Muslim cleric Al-Qaradawi to UAE, PM’s office says
- The UAE and Egypt have both filed requests for his extradition
CAIRO: Lebanon is set to extradite the son of late senior Muslim cleric Youssef Al-Qaradawi to the United Arab Emirates after the country’s caretaker cabinet approved the move on Tuesday, the Lebanese prime minister’s office said.
Abdul Rahman Al-Qaradawi, an Egyptian-Turkish poet, was detained in Lebanon on Dec. 28 after returning from Syria, according to his lawyer Mohammad Sablouh and human rights group Amnesty International.
Youssef was stopped by Lebanese authorities on the basis of an Egyptian court ruling against him that dates back to 2016.
The arrest was made based on an Interpol notice issued by the Arab Interior Ministers Council based on the 2016 court ruling to imprison Youssef for three years on charges of spreading false news.
The UAE and Egypt have both filed requests for his extradition.
Qaradawi’s lawyer said he would file an urgent appeal to block his extradition on Wednesday morning but feared his client might be flown out of the country before then.
UN calls for $370m in new humanitarian aid for Lebanon
- Following nearly a year of exchanges of cross-border fire initiated by Hezbollah over the war in Gaza, Israel in September stepped up its bombing campaign and later sent troops into Lebanon
UNITED NATIONS, United States: The United Nations joined the Lebanese government on Tuesday to appeal for an additional $371.4 million in humanitarian aid for people displaced by the conflict between Israel and Hezbollah.
The extension builds on an initial aid appeal for $426 million launched in October, as all-out war flared between the two sides and sent hundreds of thousands in Lebanon fleeing their homes.
That appeal raised approximately $250 million, according to the UN.
Following nearly a year of exchanges of cross-border fire initiated by Hezbollah over the war in Gaza, Israel in September stepped up its bombing campaign and later sent troops into Lebanon.
After two months of warring, in which Hezbollah’s influential chief Hassan Nasrallah and multiple other leaders were killed, a ceasefire deal was reached that went into effect in late November.
“While the cessation of hostilities offers hope, over 125,000 people remain displaced, and hundreds of thousands more face immense challenges rebuilding their lives,” Imran Riza, the UN humanitarian coordinator in Lebanon, said in a statement Tuesday.
The additional funding “is urgently required to sustain life-saving efforts and prevent further deterioration of an already dire situation,” he added.
The appeal is primarily aimed to assist an estimated one million Lebanese, Syrian and Palestinian refugees affected by the conflict, funding a three-month period of emergency efforts through March 2025.
Since the ceasefire between Israel and Lebanon began on November 27, more than 800,000 displaced people in Lebanon have been able to return home, according to UN figures.
Qatar and Turkiye dispatch two power ships to generate electricity for Syria
- The vessels, which have power plants installed, are expected to increase the amount of electricity generated in the country by about 50 percent
- Syria’s energy infrastructure was badly damaged during the decade-long civil war, with most areas receiving power for only two or three hours a day
LONDON: Qatar and Turkiye sent two power-generating ships to Syria on Tuesday to help address the energy crisis in the country caused by insufficient electricity supplies.
Khaled Abu Di, the director of Syria’s Public Establishment for Transmission and Distribution of Electricity, said the floating power plants are capable of generating a total of 800 megawatts a day, which would increase the amount of electricity generated in the country by about 50 percent, state news agency SANA reported.
Syria’s energy infrastructure was badly damaged during more than a decade of civil war in the country that culminated in the fall of the ruling Assad regime in December. The deterioration resulted in severe power shortages, with many areas receiving electricity for only two or three hours a day.
Abu Di said efforts are underway to secure transmission lines to deliver the electricity generated by the ships. He added that his team is also working to repair dozens of damaged conversion plants and connection lines to get the national grid up and running again.
