Syrian government cuts diesel prices after widespread protests over fuel costs

The Syrian government has announced it will reduce diesel prices for heating, agriculture and industry, following days of protests over a fuel price hike. Energy Minister Mohammed Al Bashir stated that the government acknowledged higher energy costs directly impact people's lives and various sectors. He emphasized that the government's role extends beyond securing petroleum products to finding solutions to alleviate the burden while ensuring supply continuity.

Subsidised diesel will be sold at 115 Syrian pounds ($0.94) per litre for heating, agriculture, and those eligible for government aid. A second-grade diesel will cost 150 pounds per litre for some production and service sectors, while the standard grade will remain at 175 pounds per litre. Petrol and gas prices will not change. The standard diesel price is currently below its actual cost of 206 pounds per litre, according to Al Bashir.

The decision came after President Ahmad Al Shara's meeting with Al Bashir on Wednesday night to address the fuel crisis, which sparked widespread protests across Syria, especially in eastern and northern regions. Protesters demanded the reversal of the price increase, calling it a major test for the new government following the Assad regime's fall.

The Ministry of Energy had raised fuel prices by 25 to 40 percent on Saturday, which coincided with the temporary shutdown of the Baniyas refinery for major repairs. This shutdown increased Syria's dependence on expensive fuel imports, exacerbating the economic hardship faced by Syrians, with about 90 percent living below the poverty line, according to UN estimates.

Al Bashir also revealed that several small local refineries would restart operations under the Syrian Petroleum Company's management, boosting their crude oil processing capacity to approximately 35,000 barrels per day. Yousef Qablawi, the Syrian Petroleum Company's chief executive, said the company was drafting an implementation plan for the measures, following consultations with the ministry. Global energy prices have surged since the Iran war began in February.