The Crises of Today and Tomorrow: Fuel Problems Threatening to Overwhelm Lebanon in the Anniversary of the August 4 Blast
A worker looks over the damage caused by the August 4 blast in Beruit
Reeling under their worst ever economic crisis - one the World Bank has described as one of the worst on the planet since 1850 - the Lebanese are facing a multitude of problems today as a result of decades of rampant corruption and mismanagement.
The crisis comes at the backdrop of the first anniversary of the Beirut Port explosion on 4 August, when a massive blast ripped through the city, killing over 200 people and wounding around 6000 others.
The explosion left billions of dollars worth of damage, destroying or severely damaging thousands of buildings which are slowly being reconstructed thanks to the hard work of local NGOs, amid a complete absence of the Lebanese state.
One is lost for words when describing the tragedy that befell the Lebanese capital on that day in 2020, a year considered by many to be one of the worst to face Beruit in modern times. It was one of the biggest non-nuclear explosions in world history, and the largest since the end of the second world war.
On top of having to deal with a collapsing economy, a dire financial situation, and the pandemic, this catastrophe – still being investigated by the Lebanese judiciary despite several attempts to obstruct the legal process – is like no other witnessed in the country to date.
The August 4 Protests
The victims families, and the population as a whole, are demanding justice. It is thought that thousands will fill the streets on August 4 in commemoration, as a procession is planned to take place towards the nearly-completely destroyed port – one of largest and busiest in the Mediterranean Sea – which is operating at minimum capacity.
We should expect the unexpected. What may unravel could be huge, or not. Angry protesters who are continuing the revolution which began on October 17, 2019, could use this opportunity to break into government buildings and even reach Parliament, as was done days after the explosion last year.
Beirut is a city in grief. The lights are off because there is no fuel, its port is in ruins, and its residents are drained. Exhausted, in mourning, angry, depressed.
The people of Beirut and all of Lebanon – residents and expats alike – are waiting for justice to be served, not only with regards to the port explosion, but the entire system of corruption which has thrown Lebanon to its knees begging for help.
Its cry has been heard, and while some decide to ignore it because they simply don’t care or are complicit, others have taken an oath to fight till the very last breath. Will Lebanon rise from the ashes as it always has? Will this nation still be able to live up to its “Phoenix” metaphor? The coming days, weeks and months will tell.
Until then, we, the people, will do everything we can to help.
Fuel
Fuel costs for Lebanon’s ageing power stations have accounted for most of the tens of billions of dollars squandered over the years, standing at around half of Lebanon’s sovereign debt.
Due to dwindling US dollar reserves at the country’s Central Bank (BDL) which (until very recently) used to subsidise commodities such as fuel and diesel, the Lebanese have for weeks been faced with a massive shortage, which has gradually taken its toll on many sectors.
Long queues at gas stations in scorching summer heat has added to the list of daily struggles the Lebanese are being forced to deal with. People can be left waiting for hours at a time in the long line of vehicles, which has seen fights - sometimes armed- erupt.
These lines have become known as “queues of humiliation.”
From the ordinary citizen going about their day to day lives, to taxi drivers and even servicemen, vehicles line up in the dozens waiting for a tank of gas. A video went viral a few weeks ago showing policemen pushing their car to the nearest gas station, a reflection of just how severe the crisis is. What’s even more infuriating is being told “we’ve run out” when it’s finally a motorist’s turn.
Dollar reserves at BDL have slowly evaporated since late 2019, either because big depositors have allegedly sent their money abroad to countries like Switzerland, or because of continued subsidisation and a lack of long term policies.
This has forced the financial institution to take the tough decision of gradually lifting subsidies which kept a cap on prices of essentials for many years.
Despite repeated assurances by syndicates in charge of importing fuel, gas station owners and other relevant authorities, such “assurances” have proven up till this very hour to be nothing but empty promises as the funds needed are not available.
Amounts which have been imported and distributed so far have not met local demand, and are only quick fixes to the problem which require long term solutions, something the ruling class has repeatedly failed to accomplish, the same ruling class which is accused of deliberately impeding any attempts for reform as its biggest sources of financing come from fuel.
Smuggling into Syria also accounts as one of the biggest reasons as to why the limited amounts of fuel being imported are failing to meet local needs.
The illegal practise of smuggling goods to Lebanon’s war-torn neighbour has worsened since the economic crisis began. Just like the Lebanese, Syrians are also fighting on several different fronts to make ends meet as their currency plunges and essentials are limited.
Several fuel tankers have been seen - and occasionally stopped by locals - as they’ve made the journey into Syria to fill the market with fuel subsidised by the US dollars of Lebanese depositors which are stuck in the banks.
It is believed that these smugglers receive the backing of some politicians and officials in certain Lebanese security agencies. While fingers usually point to the Shiaa paramilitary force Hezbollah, the group in turn has accused others of also partaking in the activity.
The fuel crisis has turned into a source of problems battering several sectors in the country.
Hospitals, bakeries several other businesses and government institutions are warning of catastrophic consequences if the problem persists. Even now, during the summer holiday season that has seen Lebanese expats and foreigners trying to take advantage of the crashing currency, some hotels are having to turn away guests as the lights stay off.
A breakthrough could be possible if Lebanon manages to buy fuel from Iraq, which will have to be imported via Syria currently sanctioned under the US Caesar Syria Civilian Protection Act 2019. But until that or anything else materialises, the people of Lebanon are left waiting.
Appeal for Donations
Please visit the below websites if you’d like to donate to one of the many NGOs working on the ground in Beirut, helping to renovate homes affected by the explosion:
https://beirutheritageinitiative.com/donate/