BEIRUT: The Court of Accounts will submit its final report on “the red gasoil scandal” Tuesday as fuel prices continued to climb for the seventh week in a row.

“We are currently in the process of a final review of the report after a primary report was finalized earlier. Head of the court Aouni Ramadan informed Prime Minister Najib Mikati of the investigation’s updates and its primary results today [Wednesday],” the COA attorney general told the Central News Agency.

Sources close to the court had told The Daily Star earlier that 10 public employees were being named in the investigation. Bassam Wehbe told the CNA that the court’s investigation was focused on exposing the role of around 100 distribution companies who were involved in the hoarding of VAT-free gasoil.

Last week, the Court of Accounts launched an investigation into allegations that distribution companies had profited illegally by purchasing $80 million of red gasoil that had been exempt from value added tax but made the gasoil available to consumers only after the government resumed charging VAT.

Reports said distribution firms illegally reaped an estimated $800,000 in profits in 24 hours.

But oil sector experts suggest hoarding was taking place throughout the VAT-free period.

The prices of gasoil and diesel are expected to fall once Parliament convenes and approves a recommendation by the parliamentary Budget and Finance Committee to permanently exempt the commodity from VAT.

This measure would prevent distribution companies and gas station owners from profiteering from hoarding VAT-free gasoil. – The Daily Star