Syria’s Energy Ministry announced late Saturday that it was raising prices for petroleum products by between 25% and 40%, with the new prices taking effect on Sunday. It attributed the decision to an exceptional increase in the global cost of securing petroleum products and the Banias refinery’s entry into a comprehensive overhaul expected to last about two months. The ministry said the price adjustment was temporary and linked to exceptional circumstances.
Import costs and refining pressures
The ministry said the increase was not linked solely to the price of crude oil, explaining that refined-product markets were facing pressure from reduced supply, disruptions to refining capacity and higher transport, shipping and insurance costs, all of which were increasing the cost of securing supplies for the Syrian market.
It said Syria needs nearly 300,000 barrels per day of oil and petroleum products, while domestic crude oil production stands at about 100,000 barrels per day, making it necessary to cover part of the country’s needs through imports. It added that some Syrian crude is heavy and does not fully match available refining capacity, while limited quantities of crude unsuitable for refinery requirements are exported alongside imports of the products needed by the market.
The market’s daily diesel requirement is about 7.72 million liters, including 3.09 million liters from domestic production and 4.63 million imported liters, meaning that about 60% of supplies depend on imports. Average daily gasoline supply is about 2.32 million liters, including 1.54 million liters of domestic production and about 775,000 imported liters. Average daily household gas supply stands at about 912 tons, with heavy reliance on imports.
Banias refinery overhaul
The ministry said the Banias refinery had entered a comprehensive overhaul expected to last about two months, reducing domestic refining capacity during that period and increasing the need to purchase finished petroleum products from foreign markets.
Youssef Qablawi, chief executive of the Syrian Petroleum Company, said the main aim of the overhaul was to increase the refinery’s operating capacity from about 80,000 barrels per day to about 130,000 barrels per day, an increase of nearly 50,000 barrels per day. He added that a comprehensive overhaul was a routine procedure requiring the refinery to be shut down for a specified period to carry out dismantling, inspection and assessment work and replace parts that needed changing.
Warnings of higher production and living costs
Ziad Arabsh, an economic adviser and energy expert, said gasoline prices had risen by 25% and diesel prices by 40%, warning that the increase would affect the transport, industrial and agricultural production sectors, particularly farmers facing higher fertilizer, electricity and transport costs.
Arabsh expected the increase to drive up living costs, fuel inflation and weaken the lira, warning of social repercussions as the decision coincided with other price increases. He called for prices to be reduced after a short period, as the ministry had promised, and for efforts to accelerate the expansion of domestic production to cover internal consumption.
Economic expert George Khzam described the increase in fuel prices as a “financial disaster” for producers, consumers and markets, forecasting higher production and transport costs and a decline in the purchasing power of incomes, alongside a major increase in electricity tariffs. He said this could lead to lower demand, consumption and production, arguing that fuel pricing after the removal of government subsidies should be based on the average cost of domestic production and imports.
Protests and suspension of some transport services
Several areas of Syria saw protests against the decision to raise petroleum product prices, including the villages of Markada and Zain al-Mabraj in Hasakah in northeastern Syria. Roads were also blocked in front of oil tankers near the 47 area south of Hasakah and near the Silo Roundabout in Raqqa province.
The city of Tabqa in Raqqa province and the city of Deir ez-Zor in eastern Syria saw protests by public transport drivers, some of whom stopped working because of the increase in petroleum product prices.
