The recent increase in fuel prices in Syria has exacerbated the cost of living, driving up the prices of consumer goods and transportation fares. Despite these hikes, the black market for diesel and gasoline remains unchecked, and the prosecution of crisis profiteers has yet to become a priority for the Assad regime. On Sunday night, the Ministry of Internal Trade and Consumer Protection raised the price of a litre of 90-octane gasoline by 231 lira, bringing it to 10,966 lira (around $0.75), while the price of 95-octane gasoline was increased by 221 lira to 12,573 lira.
The price hike didn’t spare mazut (diesel). The cost of a liter of free mazut was raised by 468 lira, making the new price 11,183 lira. Additionally, the price of a ton of mazut fuel was increased by 831,330 lira, setting the new price at 8,583,963 lira. Syrian economist Hussein Jamil commented that the rise in fuel prices will have a direct impact on the cost of consumer goods, noting that fuel is a critical component of production. “The burden will ultimately fall on the Syrian consumer, who is already suffering from poverty and starvation,” Jamil told Al-Araby Al-Jadeed.
Jamil also noted that despite the price hikes, fuel is still widely sold on the black market. “It’s sold openly on sidewalks, in full view of the government,” he remarked. He questioned how traders manage to obtain oil derivatives and sell them through street vendors, adding that the government’s claim of distributing fuel to Syrians according to their allocations “no longer fools anyone.” Currently, the black market price for a liter of mazut is around 20,000 lira, while gasoline prices range between 23,000 and 25,000 lira per liter.
Sources in Damascus have reported that the continuous rise in food prices is pushing Syrians to the breaking point. Since the start of the Israeli bombardment on Lebanon and the return of Syrian and Lebanese IDPs, food prices have surged by 30 to 40 percent. The bombardment of the Masnaa border crossing has also disrupted the supply of essential items, particularly sugar, rice, and vegetable oil.
As for the most consumed commodities, the sources indicated that the price of a kilo of tomatoes has reached 8,000 lira, cucumbers 13,000 lira, and potatoes have surged over 40% in the past month to around 16,000 lira. Onions are priced at 9,000 lira, while garlic remains exorbitantly high at 100,000 lira per kilo. Vegetable oil saw the most significant increase, rising by 8,000 lira per liter to exceed 30,000 lira, and the price of sugar has now surpassed 13,000 lira. Garlic, potatoes, and oil have begun entering regime-controlled markets through liberated areas in northwestern Syria.
Repercussions of the Fuel Price Hike on Markets
Observers agree that the continued rise in fuel prices will further increase the cost of goods, adding to the suffering of Syrians. Many believe this is a precursor to the full removal of fuel subsidies, with the government considering compensating Syrians with a financial payout, a proposal currently being discussed by the new administration.
Syria’s economic woes have deepened as a result of plummeting oil production, which has dropped by approximately 96% since the outbreak of the war. According to a statement by the Syrian oil minister, the conflict has caused a dramatic decline in production, reducing it to about 4% of pre-war levels. “Oil production fell from 385,000 barrels per day to just 14,000 barrels,” the minister explained.
Economist Abdul Nasser al-Jassim emphasized that the drastic fall in oil production—from over 380,000 barrels per day, with more than half exported until 2011—has left the Assad government severely exposed. “This not only deprived the regime of critical foreign currency but also drained its financial reserves, as it now imports approximately 150,000 barrels per day,” al-Jassim noted.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
