Lebanese President Michel Aoun said that the state treasury will bear the cost of continuing the fuel subsidy, which was decided on Saturday.

The Central Bank of Lebanon stated earlier on Saturday that the government decided to increase the exchange rate for fuel pricing to be eight thousand pounds to the dollar over the previous price, which was 3900, in a decision that will lead to a rise in fuel prices.

The new exchange rate allocated to fuel imports is still below the market price level of about 19,000 against the dollar, which means the continuation of the fuel subsidy policy, albeit at a lower rate.

Central Bank of Lebanon governor Riad Salameh told Reuters on Saturday that the Lebanese government had decided to change the exchange rate used as a basis for fuel imports, effectively increasing retail prices.

Salameh added that the government will price fuel imports at 8,000 pounds to the dollar, starting on Saturday, compared to 3,900 pounds to the dollar previously.

The decision aims to reduce fuel shortages.