Lebanon petrol stations suspend strike over dollar ‘shortage’
September 27, 2019, 2:29 pm

Lebanon petrol stations suspend strike over dollar ‘shortage’

Motorists in Lebanon streamed into petrol stations to replenish their vehicles after owners announced a strike, now suspended, over an alleged shortage of dollar reserves. (File photo AFP)

Owners of petrol stations in Lebanon on Friday suspended a strike called over an alleged shortage of dollar reserves, pending a meeting with the prime minister later in the day.

The Syndicate of Gas Station Owners on Thursday night announced an open-ended strike, saying banks were not supplying them with the dollars they need to pay importers and suppliers because of a shortage in reserves.

Motorists streamed into filling stations to replenish their vehicles after the strike announcement on Thursday, resulting in long queues.

“The syndicate decided to suspend the strike on Friday,” after a meeting was scheduled with Prime Minister Saad Hariri in the afternoon, said Sami Brax, the head of the syndicate.

“We will meet again on Saturday morning to determine our final position,” he added in a statement.

Lebanese media this week reported that banks and money exchange houses were rationing their dollar sales over a feared shortage in reserves.

The syndicate had said that petrol station owners were having to purchase dollars on the black market or from money exchange offices at higher rates.

Lebanese officials, including President Michel Aoun and Central Bank governor Riad Salameh, have tried to play down the risk of an economic collapse.

When asked about a feared shortage in dollar reserves, Aoun on Friday said “Lebanon is not in danger.”

“I will not let Lebanon collapse,” he told reporters.

Foreign Minister Gebran Bassil acknowledged “external pressure on the economy and the Lebanese pound,” but said that local parties were exaggerating the situation to undermine the government, the state-run National News Agency (NNA) reported on Friday.

“There are local actors who are conspiring against the country and its economy,” he said.

They are “fabricating” the situation “to incite citizens against the state,” he added.

Salameh on Monday denied that Lebanon was facing a dollar crisis.

“Dollars are available in Lebanon,” the central bank governor said in a news conference, calling reports of a shortage an “exaggeration.”

Economic growth in Lebanon has plummeted in the wake of repeated political deadlocks in recent years, compounded by the impact of eight years of war in neighboring Syria.

Lebanon’s public debt stands at around $86 billion -- higher than 150 percent of GDP -- according to the finance ministry.

Eighty percent of that figure is owed to Lebanon’s central bank and local banks.

Last month, ratings agency Fitch bumped the country down to “CCC” over what it called “intensifying pressure on Lebanon’s financing model.”

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.