Daraa – Halim Muhammad

The rise in diesel prices in Daraa province, southern Syria, has negatively impacted commercial and agricultural activities, affecting the costs of plowing, machinery, and transportation.

The price of a liter of diesel reached 20,000 Syrian pounds ($1.3) after it did not exceed 16,000 ($1) in September.

Rising food prices

Some food merchants attributed the increase in prices of most commodities to the rise in diesel prices and the decline in the value of the Syrian pound against foreign currencies.

According to monitoring by Enab Baladi’s correspondent in Daraa, the price of a liter of cooking oil rose from 23,000 Syrian pounds to 28,000 since the beginning of October, while the price of a kilogram of sugar increased from 10,000 pounds to 11,500 pounds.

Hussein, a food merchant in the western countryside of Daraa, attributed the price increase to the rising shipping costs, stating that wholesalers added shipping costs to the product, leading to its price rise, as Daraa province imports most food items from the capital, Damascus.

Hussein added that the decline in the value of the Syrian pound against the dollar also played a role, as the exchange rate of the Syrian pound reached 15,000 pounds for one dollar, after it stabilized at 14,700 pounds to the dollar during the past three months.

Vegetable shipping raises costs

The rise in diesel prices has disrupted the transportation of olive and pomegranate crops in Daraa, especially as most production is exported to Damascus and to neighboring provinces and countries.

Moataz, a 45-year-old agricultural merchant, who is currently purchasing pomegranates from farmers, known locally as “al-Dhaman,” told Enab Baladi that diesel has raised shipping fees more than double compared to last year.

He said that the fee for shipping a 30-ton refrigerated truck, which did not exceed three million Syrian pounds ($210) last season, has now reached seven million pounds ($469) this season.

Additionally, shipping fees for smaller vehicles within the province have also doubled, according to several owners of agricultural shipping vehicles.

Yasser, a 40-year-old truck owner who transports vegetables from the orchards of western Daraa to the al-Hal market in the city of Tafas, stated that truck owners have had to double their fees due to the high cost of diesel.

Doubled cooling costs

Owners of cooling and storage units contracted with merchants for the pomegranate crop at the beginning of September to store the produce for 600 Syrian pounds per kilogram, but the rise in diesel prices has eliminated the profit margin for the owners of refrigeration units, risking their losses.

Fares, a 35-year-old owner of a cooling unit in the Daraa countryside, expressed fear of guaranteed losses because he operates his cooling unit on a diesel engine that requires six liters of diesel per hour.

He said he contracted with the merchant when the price of diesel was 16,000 pounds per liter and requested an amendment to the contract terms to raise the price to 1,000 pounds per kilogram, but the merchant refused.

Increased feed prices

The rise in diesel prices led to an increase in feed prices in the local market, due to the increased transportation costs added by merchants to the feed price.

The price of a 50-kilogram feed bag has risen by nearly 20,000 Syrian pounds ($1.3), according to observations by Enab Baladi in the local market.

Yusuf, a 38-year-old cattle breeder, stated that the price of milk no longer covers the cost of feed after the recent hikes, as the price of a kilogram of milk reached 5,000 pounds, which is sold directly to the merchant, while the price of a kilogram of feed is 5,800 pounds.

Furthermore, the high cost of diesel has affected the costs of plowing the dunam, which increased from 100,000 pounds to 120,000 pounds, as well as rising costs of spraying medicines, organic fertilizers, irrigation fees, and others.