Syrian government cuts diesel prices after widespread protests over fuel costs

Syria has introduced lower-priced diesel fuel following nationwide protests triggered by a recent increase in fuel costs. Energy Minister Mohammed Al Bashir declared on Thursday that the government acknowledges that higher energy prices directly affect livelihoods and key sectors, including agriculture, production, and services.

"Our role extends beyond securing petroleum products; we also strive to alleviate burdens while preserving supply continuity," he emphasized. Subsidized diesel will be sold at 115 Syrian pounds ($0.94) per litre for heating, agriculture, and government-assisted consumers. A second grade will cost 150 pounds per litre for certain production and service sectors, while the standard grade remains at 175 pounds per litre.

Petrol and gas prices are unchanged. The standard diesel price is still below its actual cost of 206 pounds per litre, according to Al Bashir, speaking at a Damascus press conference alongside Syrian Petroleum Company CEO Yousef Qablawi. The exact duration and cost of the subsidy remain uncertain. The move followed a meeting with President Ahmad Al Shara on Wednesday night to address the fuel crisis, which sparked widespread protests, notably in eastern and northern regions, demanding the reversal of the price hike.

The Ministry of Energy had raised fuel prices by 25-40% on Saturday, coinciding with the temporary shutdown of the Baniyas refinery for a major overhaul. This shutdown has increased Syria's dependence on expensive fuel imports, exacerbating the government's challenge. Over 90% of Syrians live below the poverty line, as per UN estimates.

Al Bashir also announced that several small local refineries will resume operations under the Syrian Petroleum Company's management, boosting their combined crude oil processing capacity to approximately 35,000 barrels per day. Qablawi stated that the company is drafting an implementation plan for the measures, following consultations with the Ministry. Global energy prices have surged significantly since the outbreak of the Iran war in February.