Syria has announced it will offer lower-cost diesel for heating, agriculture and industry, days after demonstrations erupted across the country over a fuel price rise.
Energy Minister Mohammed Al Bashir said that the government recognised that higher energy prices "have a direct impact on people’s livelihoods and on the agricultural, production and service sectors".
“Our responsibility is not limited to securing petroleum products. It also includes seeking solutions that ease the burden, while maintaining continuity of supply," he added.
Mr Al Bashir said subsidised diesel would be sold at 115 Syrian pounds ($0.94) per litre for heating, agriculture and consumers eligible for government support. A second grade would be sold at 150 pounds per litre for some production and service sectors.
The standard grade would remain at 175 pounds per litre, while petrol and gas prices would not change. The standard diesel price remains below its actual cost of 206 pounds per litre, Mr Al Bashir told a media conference in Damascus, where he was joined by Syrian Petroleum Company chief executive Yousef Qablawi.
It remains unclear how long the subsidy will stay in place and how much it will cost the government. The decision came after a meeting with President Ahmad Al Shara on Wednesday night to discuss the fuel crisis that has led to protests, in a major test for the government that replaced the Assad regime.
The Ministry of Energy raised fuel prices by between 25 and 40 per cent last Saturday. That sparked some of the most widespread protests since the fall of the Assad regime, particularly in eastern and northern Syria, with demonstrators demanding that the increase be reversed.
The ministry said the increase in the cost of petroleum products reflected rising global oil prices and coincided with the temporary shutdown of the Baniyas refinery for a major overhaul.
The project, which is expected to increase the refinery’s capacity to about 130,000 barrels per day, has increased Syria’s dependence on more expensive fuel imports, Mr Al Bashir said.
Syrians rely heavily on diesel to run generators amid widespread power cuts. The fuel is also crucial for transport, adding further strain on a population already struggling with economic hardship after decades of western sanctions. About 90 per cent of Syrians live below the poverty line, UN estimates show.
Mr Al Bashir also said several small local refineries would resume operations under the management and supervision of the Syrian Petroleum Company, bringing their combined crude oil processing capacity to about 35,000 barrels per day.
Mr Qablawi said the company had begun drawing up an implementation plan for the measures after discussions with the ministry. Global energy prices have increased sharply since the outbreak of the Iran war in February.
