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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.<\/p>\n
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.<\/p>\n
The measures came a day after President Ahmad Al-Sharaa received Al-Bashir to discuss the current state of Syria\u2019s energy sector, fuel supplies and ways to develop the country\u2019s energy system and improve its efficiency.<\/p>\n
The Energy Ministry raised fuel prices earlier this week as a major overhaul of the Baniyas refinery temporarily increased Syria\u2019s need for imported petroleum products.<\/p>\n
The increases prompted public dismay across the country.<\/p>\n
Al-Bashir said higher global fuel prices and increased transportation, shipping and insurance costs had added to the cost of securing supplies.<\/p>\n
The overhaul is expected to improve the refinery\u2019s efficiency and raise its processing capacity to about 130,000 barrels per day.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The shutdown has coincided with what Al-Bashir described as exceptional pressures in global energy markets.<\/p>\n
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.<\/p>\n<\/div>\n