BEIRUT: Metn MP Ibrahim Kanaan denied Monday that oil refineries in Zahrani had received and distributed red gasoil one day before the deadline to reinstate VAT on the commodity.

Speaking during a parliamentary Finance and Budget Committee session, Kanaan said the ship holding the red gasoil was delayed by bad weather en route to Zahrani. “Instead the ship returned to Tripoli and filled in the north’s refinery and 1 million liters of red gasoil were transferred to Zahrani [by land],” Kanaan said.

Head of the Court of Accounts Aouni Ramadan, tasked with investigating the scandal, said last month that Deir Ammar and Zahrani refineries received their share and distributed the red gasoil one day before the end of the deadline to restore VAT on the oil.

The scandal began days after Cabinet approved a subsidy program of LL3,000 for 20 liters of fuel oil for a period of one month in December of last year.

Late last month, Ramadan said 60 companies resold the red gasoil at the pre-subsidy price for profit.

After listening to a brief presentation by Energy Minister Jibran Bassil, Kanaan said that the act of placing a subsidy on oil allows companies to manipulate and earn “illegal” profits.

Kanaan also called for continuing the investigation to find out whether there are politicians behind the scandal.