A total electricity blackout is expected in Lebanon due to a lack of fuel for the country's power plants according to local media.

The daily As Safir says one of the reasons for the fuel shortages is the lack of letters of credit (L/Cs) required to release cargoes from ships that are already docked in Lebanese ports and waiting to offload fuel.

Blackouts

At the end of August, there was fuel rationing in Beirut and several other areas of Lebanon. Beirut is currently facing 14 hours of blackout a day.

Lebanon's poor financial circumstances are to blame for the situation according to As Safir. It says there are four tanker ships waiting off the coast of Lebanon to be offloaded.

No L/C funds

But it says that L/Cs are required to release the fuel, and the Lebanese treasury has not been able to open these due to a lack of funds.

One of the ships has reportedly been waiting for 40 days to offload its cargo and is costing the government US$30,000 per day in penalties.

Collection problems

Lebanon's monopoly electricity provider has been facing collection problems for years.

People in areas under Hezbollah and Amal control routinely refuse to pay for electricity, and many fee collectors have been attacked, killed or wounded.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.