Official announcement of fuel price increases in Syria
The Syrian Company for Storing and Distributing Petroleum Products (Mahroukat) announced a new adjustment to the prices of petroleum derivatives, a move reflecting the growing economic challenges facing the country. In its statement, the company explained that this decision resulted from a range of economic and technical factors, most notably the increased costs of supply, transportation, and production, in addition to the ongoing fluctuations in global oil prices and high shipping and insurance costs.
According to the new pricing, the price of a liter of diesel fuel was set at $0.88, 90-octane gasoline at $1.10, and 95-octane gasoline at $1.15. The price of a domestic gas cylinder reached $12.50, and an industrial cylinder $20, with a special exchange rate of 133 Syrian pounds to the dollar used in pricing fuel.
Context of the crisis: Years of economic challenges
This decision cannot be understood in isolation from the economic and historical context of Syria. Once an oil exporter, the country has become a net importer over the past decade to meet its domestic needs. The ongoing conflict since 2011 has destroyed much of the energy sector's infrastructure, including oil fields and refineries, drastically reducing domestic production. Furthermore, international economic sanctions imposed on Syria severely impede imports and financial transfers, making securing petroleum products a complex and extremely costly process, often reliant on credit lines from allied countries.
Expected impact on the economy and society
The decision to raise fuel prices is expected to have broad and direct repercussions on various aspects of life in Syria. Domestically, this increase will lead to an automatic rise in transportation costs, which will, in turn, be reflected in the prices of all food commodities and basic goods. Productive sectors, such as industry and agriculture, which rely heavily on diesel fuel to operate machinery and generators due to the near-constant power outages, will also be affected. This additional burden on production costs will inevitably be passed on to the end consumer, exacerbating inflationary pressures and further weakening the purchasing power of citizens, which has already been eroded by the devaluation of the Syrian pound. On a social level, the decision will increase the financial burden on Syrian families struggling to meet their daily needs, particularly regarding heating costs during the winter and daily transportation.
Company justifications and control mechanisms
The Mahrukat Company confirmed that the price adjustment aims to ensure stable supplies and the continued availability of petroleum products in the governorates, preventing shortages or bottlenecks in the market. The company noted that it bears significant operational burdens related to transportation, storage, and maintenance, and that periodic price reviews are essential to maintain the sustainability of its operations. According to its statement, the company is also working to improve distribution and monitoring mechanisms to reduce waste, regulate the market, and guarantee the regular delivery of fuel to citizens and production sectors, in an effort to achieve a difficult balance between high operating costs and the strained purchasing power of citizens.
