Arab News | Syria to offer lower-priced diesel to ease fuel costs for consumers

DAMASCUS: Syria will introduce subsidized diesel at 115 Syrian pounds ($0.94) per liter for heating, agriculture and eligible consumers, while a second grade will be sold at 150 pounds ($1.23) per liter for some productive and service sectors, Energy Minister Mohammad Al-Bashir said on Thursday.

Standard-specification diesel will remain at 175 Syrian pounds ($1.43) per liter, below its actual cost of 206 pounds ($1.69) per liter, Al-Bashir told a press conference in Damascus alongside Syrian Petroleum Company CEO Youssef Qablawi.

The measures came a day after President Ahmad Al-Sharaa received Al-Bashir to discuss the current state of Syria’s energy sector, fuel supplies and ways to develop the country’s energy system and improve its efficiency.

The Energy Ministry raised fuel prices earlier this week as a major overhaul of the Baniyas refinery temporarily increased Syria’s need for imported petroleum products.

The increases prompted public dismay across the country.

Al-Bashir said higher global fuel prices and increased transportation, shipping and insurance costs had added to the cost of securing supplies.

The overhaul is expected to improve the refinery’s efficiency and raise its processing capacity to about 130,000 barrels per day.

To meet local needs, the Energy Ministry decided to restart a number of small-scale refineries with a combined crude-processing capacity of up to 35,000 barrels per day.

The entire diesel output of the small-scale refineries will be allocated to the subsidized grade priced at 115 pounds ($0.94) per liter, designated for heating, agriculture and eligible beneficiaries, Al-Bashir said.

Petroleum products refined by the facilities will be sold through designated fuel stations, Qablawi said, with distribution coordinated by the Syrian Petroleum Company, governorates and other relevant authorities.

Diesel priced at 150 pounds ($1.23) per liter, which al-Bashir said was secured in cooperation with friendly countries, will be allocated to some productive and service activities as well as engineering and heavy machinery.

Al-Bashir said the different grades and prices were intended to provide consumers and productive sectors with options suited to their needs and reduce costs.

Qablawi said the Syrian Petroleum Company had begun preparing an implementation plan with the Energy Ministry after reviewing technical and operational details and working to address potential obstacles.

Al-Bashir said the Baniyas refinery overhaul had become technically necessary after years of operation and includes the rehabilitation and replacement of major units and equipment.

The shutdown has coincided with what Al-Bashir described as exceptional pressures in global energy markets.

He cited lower oil and gas production, disruptions to energy routes, reduced refining capacity and increased demand for petroleum products as factors pushing up fuel, shipping and insurance costs.