Syrian Government Lowers Diesel Prices Following Nationwide Protests Over Energy Costs

Syria has announced it will offer lower-cost diesel for heating, agriculture and industry, days after demonstrations erupted across the country over a fuel price rise.

Energy Minister Mohammed Al Bashir said on Thursday that the government recognised that higher energy prices "have a direct impact on people’s livelihoods and on the agricultural, production and service sectors". “Our responsibility is not limited to securing petroleum products. It also includes seeking solutions that ease the burden, while maintaining continuity of supply," he added.

Mr Al Bashir said subsidised diesel would be sold at 115 Syrian pounds ($0.94) per litre for heating, agriculture and consumers eligible for government support. A second grade would be sold at 150 pounds per litre for some production and service sectors. The standard grade would remain at 175 pounds per litre, while petrol and gas prices would not change.

The standard diesel price remains below its actual cost of 206 pounds per litre, Mr Al Bashir told a media conference in Damascus, where he was joined by Syrian Petroleum Company chief executive Yousef Qablawi. It remains unclear how long the subsidy will stay in place and how much it will cost the government.

The decision came after a meeting with President Ahmad Al Shara on Wednesday night to discuss the fuel crisis that has led to protests, in a major test to the government that replaced the regime of Bashar Al Assad. The Ministry of Energy had raised fuel prices by between 25 and 40 per cent last Saturday, sparking widespread protests, particularly in eastern and northern Syria.

The ministry cited rising global oil prices and the temporary shutdown of the Baniyas refinery for a major overhaul as reasons for the initial price increase. Mr Al Bashir also noted that several small local refineries would resume operations under the management of the Syrian Petroleum Company, bringing combined processing capacity to about 35,000 barrels per day.