Damascus, Syria – The Standing Committee for Setting Prices of Petroleum Products and Mineral Resources in Syria announced a decision to raise fuel and gas prices nationwide, effective Sunday. This government move entailed price adjustments across all key derivatives: the price of 95-octane gasoline reached approximately 195 Syrian pounds per liter, while 90-octane gasoline stood at 185 pounds per liter. Diesel fuel was priced at 175 Syrian pounds per liter. Domestic gas reached 1,600 pounds, industrial gas 2,560 pounds, and a ton of fuel oil was priced at 52,800 Syrian pounds.
It is worth noting that the price of a liter of 95-octane gasoline stood at 145 liras prior to these changes, meaning the increase amounts to approximately 50 Syrian liras per liter. This adjustment occurs against the backdrop of an official US dollar-to-Syrian lira exchange rate of 122 liras—according to the Central Bank’s latest updates—while the parallel market rate stands at approximately 132 Syrian liras.
The Ministry of Energy’s Justifications and the Shutdown of the Baniyas Refinery
The Syrian Ministry of Energy attributed the rise in prices of petroleum products to an inevitable and direct consequence of an “exceptional increase” in the global costs of securing these products. The Ministry also emphasized that these adjustments are temporary and primarily aimed at ensuring the uninterrupted supply and availability of energy in local markets.
The ministry stated, via the official news agency SANA, that the local market is directly affected by the rising international costs of importing gasoline, diesel, and fuel oil. This situation coincided with the Baniyas refinery—located in the west of the country—undergoing comprehensive, large-scale maintenance expected to last approximately two months. Consequently, domestic production declined, creating a temporary yet urgent need to rely on imports of refined petroleum products from abroad.
The Ministry also confirmed that the rise is not exclusively linked to the price of crude oil, but rather the refined derivatives markets are witnessing enormous pressure resulting from the decline in supply and the disruption of global refining capacities. Moreover, there are record-high costs of transportation, shipping, and marine insurance.
Data from the Ministry of Energy indicate that the global price of a ton of diesel is close to $1,400, and that of automobile gasoline is $1,350. At a time when the price of Brent crude is hovering around levels of approximately $100 per barrel.
Global market pressures and the production-import gap
Global and local petroleum product markets are facing escalating crises due to damage to and reduced efficiency of refining facilities in key regions, such as Russia and the Middle East. Furthermore, there are ongoing disruptions to supply routes and maritime navigation in the Strait of Hormuz, the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden. These factors—combined with tight inventories and heightened global competition for gasoline and diesel—have driven up the cost of refined products at a much faster rate than that of crude oil.
In this context, the Syrian Ministry of Energy revealed that the country’s daily requirement for oil and petroleum products stands at approximately 300,000 barrels. In contrast, actual domestic crude oil production does not exceed 100,000 barrels per day. The Ministry explained that domestic production does not equate to an ability to convert the entire volume into gasoline and diesel, as a portion of the crude is heavy and not fully compatible with available refining capabilities; consequently, limited quantities of unsuitable crude are exported alongside the importation of the required products.
The daily market demand for diesel stands at approximately 7.72 million liters (with a reliance on imports of about 60%, amounting to 4.63 million liters). Meanwhile, the average daily supply of gasoline is around 2.32 million liters (including 775,000 liters of imports). This is in addition to approximately 912 tons of domestic gas per day, the supply of which relies heavily on imports to meet local market needs and address the temporary supply gap.
