The National News Agency (NNA) reported on Friday that Energy Minister Gebran Bassil launched a plan to substitute for diesel fuel subsidies.

Last week Bassil raised diesel fuel prices in accordance with a cabinet decision to stop subsidies because of illegal trade in the sector.

Diesel fuel subsidization did not achieve its goal, Bassil said, adding that it only helped distributors make profits at the expense of the Lebanese treasury. 

Bassil added that he proposed for the cabinet to eliminate the Value Added Tax (VAT) on diesel fuel and deduct the previous value of the subsidy from electricity bills.

I will suggest further alternatives to the diesel fuel subsidy, the energy minister also said.

The money saved from cutting the subsidy would be used for electricity conservation matters. The cabinet last week decided to use the subsidy fund to buy and distribute energy saving light-bulbs to low-income households, subsidize the price of solar water heaters, and install new control systems for public lighting.  

-NOW Lebanon

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