Increase in Gasoline Prices Could Push Inflation Up by 40% in Syria

The government announced the price of subsidized gasoline was raised for the fifth time in less than two years, according to Athr Press.

The greatest aspirations of the people in Syria have become the ability to drive their cars and provide fuel for them after successive rises in prices under the pretext of compensating for the losses of the oil sector and providing the material in the markets, according to the Ministry of Internal Trade and Consumer Protection in its decision issued Saturday evening. It stipulated raising gasoline prices.
Economist Amer Shahda confirms the government’s lack of economic solutions. In his opinion, there is confusion in the decisions and their announcement because the timing of the increase is not commensurate with the living reality of the people under the sanctions.
He pointed out in his statement to Athr Press that raising the prices of oil derivatives, considering them as inciting commodities and interference in all sectors, will affect transport, industry, and agriculture in the first place.
Shahda added that the transport crisis will worsen the most due to rising gasoline prices. Congestion will double due to the lack of means of transportation, with new prices that will be random, in addition to the decline in the share of cars from subsidized fuels.

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He pointed out that the increase is estimated at 100%, which will raise prices by more than 40%, which in turn generates a total decline in the market and increases inflation. He expected a decline in market demand for the substance due to the decline in the purchasing ability. This, in his opinion, leads to more rigidity and is a major economic problem as it will entail an increase in spending of 200 thousand Syrian pounds, as a minimum, on the citizen. The decision to raise will not limit the black market but will increase the supply of these materials.
Shahda explained that this decision has a significant impact not on the prices of goods and transport but will affect travel to the governorates and countryside, which will decline. This will then lead to repercussions on the economic activities in the tourist areas and thus lead to a decline in tourism.
He indicated that countries that raise the prices of oil derivatives are accompanied by their decisions, facilities for loans, tax exemptions, and support for production and exports.
The Ministry of Internal Trade and Consumer Protection announced that the price of subsidized gasoline was raised for the fifth time in less than two years by 127.5%.

 

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.

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