The Syrian Ministry of Energy announced plans to introduce several types of diesel with different specifications and prices, days after fuel prices were raised and protests broke out in several areas, particularly in northeastern Syria.
Energy Minister Mohammed al-Bashir said during a press conference on Thursday, September 17, addressing developments in the oil and petroleum products sector and measures taken during the current period, that the ministry had considered several alternatives after meeting with President Ahmed al-Sharaa. The discussions resulted in approving a proposal to offer multiple types of diesel with different specifications and prices depending on their intended use.
According to al-Bashir, subsidized diesel will be sold at 115 Syrian pounds (about $0.85) per liter and allocated for heating, agriculture, and eligible groups. Another type, priced at 150 Syrian pounds (about $1.11) per liter, will be designated for some productive and service-related uses as well as engineering and heavy machinery, while standard-specification diesel will continue to be available at 175 Syrian pounds (about $1.30) per liter.
Local Refineries With Capacity of 35,000 Barrels per Day
Al-Bashir said the ministry had decided to restart a number of local electrically operated refineries with a combined capacity of up to 35,000 barrels of crude oil per day, under the management and supervision of the Syrian Petroleum Company.
He added that the refineries would operate under requirements related to operational safety, product quality, and limiting environmental impacts. Their entire diesel output will be allocated to supplying the subsidized grade priced at 115 Syrian pounds (about $0.85) per liter.
The minister said distribution of this diesel would be coordinated among the Syrian Petroleum Company, governorates, and relevant authorities to ensure it reaches eligible groups, particularly for heating and agriculture.
Al-Bashir also said the ministry had secured, in cooperation with what he described as “brotherly countries,” a type of diesel priced at 150 Syrian pounds (about $1.11) per liter. It will be allocated to some productive and service-related uses and to engineering and heavy machinery, while standard-specification diesel will continue to be supplied at 175 Syrian pounds (about $1.30) per liter.
He said the cost of a liter of diesel currently sold for 175 Syrian pounds (about $1.30) is 206 Syrian pounds (about $1.52), pointing to the gap between the cost of securing the product and its retail price to consumers.
Al-Bashir said the purpose of introducing several diesel grades is to provide options suited to different uses and reduce costs for some consumer groups and productive sectors, rather than relying on a single high-specification, high-cost product for all uses.
Designated Stations to Sell Locally Refined Diesel
Syrian Petroleum Company CEO Youssef Qablawi said during the same press conference that the company had begun preparing an implementation plan for the new measures following discussions with the Ministry of Energy on how the new diesel grades would be introduced.
Qablawi said the company had studied the technical and implementation details during the previous period and worked to address potential obstacles to ensure the measures are carried out in an organized manner.
He said designated fuel stations would sell petroleum products refined at the electrically operated refineries, but did not specify during the conference how many stations would be involved or where they would be located.
Why Did Fuel Prices Rise?
On September 13, the Permanent Committee for Determining the Prices of Petroleum Products and Mineral Resources issued a new temporary price list for petroleum products.
The new list raised the price of one liter of 95-octane gasoline to 195 Syrian pounds (about $1.44) from 152 Syrian pounds (about $1.12), and 90-octane gasoline to 185 Syrian pounds (about $1.37) from 147 Syrian pounds (about $1.09). The price of diesel increased from 125 Syrian pounds (about $0.93) to 175 Syrian pounds (about $1.30) per liter. A household gas cylinder was priced at 1,600 Syrian pounds (about $11.84), while industrial gas was set at 2,560 Syrian pounds (about $18.95).
The Ministry of Energy said the increases came amid an exceptional rise in the global cost of securing petroleum products, coinciding with the Baniyas refinery entering a comprehensive overhaul expected to last about two months. The shutdown temporarily increases Syria’s need to import finished petroleum products.
According to the ministry, the cost of refined petroleum products is not tied solely to crude oil prices. It is also affected by reduced supply, disruptions to refining capacity, and higher transportation, shipping, and insurance costs.
The ministry said domestic crude oil production does not mean that all locally produced quantities can be converted into petroleum products because of differences in the specifications of some Syrian crude, in addition to limited available refining capacity.
Baniyas and Pressure on the Fuel Market
The Baniyas refinery on Syria’s coast entered a comprehensive maintenance overhaul after years of operation. According to the Ministry of Energy, the work includes rehabilitating and replacing major units and equipment and is expected to improve the refinery’s efficiency and refining capacity once maintenance is completed.
The refinery’s shutdown increased the need to purchase finished petroleum products from foreign markets. The ministry said global markets are also facing pressure on refined products because of disruptions to supply and shipping routes, reduced refining capacity in some areas, and rising shipping and insurance costs.
The ministry said the latest price adjustment was intended to address a temporary gap between the cost of securing petroleum products and their local sale prices, while ensuring continued supplies and financing new shipments. It said the increase was not intended as a permanent price adjustment.
Al-Bashir said local prices could change again if the Baniyas refinery resumes operations and domestic refining capacity increases, or if global prices or shipping and insurance costs decline.
He said savings resulting from these factors would be reflected in local prices through the pricing committee, which would review them based on actual conditions.
Protests Preceded Announcement of New Options
The increase in petroleum product prices came amid protests in several Syrian areas, particularly rural parts of Hasakah, Deir Ezzor, and Raqqa in northeastern Syria. Protesters blocked roads, burned tires, and prevented crude oil tankers headed toward Syria’s interior from passing before the demonstrations spread to other areas.
The protests coincided with the new price list taking effect, with demonstrators calling for the fuel price increase to be reversed and organizing additional protests in several cities and towns.
Permanent Committee to Review Prices
Energy Minister Mohammed al-Bashir issued a decision on June 23 establishing the Permanent Committee for Determining the Prices of Petroleum Products and Mineral Resources.
The committee includes representatives from several government bodies and relevant institutions. It is chaired by Deputy Energy Minister for Oil Affairs Ghiyath Diab and includes representatives from the ministries of Finance, Economy, and Industry, the Central Bank of Syria, and agencies specializing in the oil and mineral resources sector.
The committee assesses petroleum product and mineral resource prices based on a range of domestic and international factors, including global prices, costs, the Syrian pound exchange rate, and subsidy mechanisms. It also updates the principles and standards used to determine prices periodically.
Under this mechanism, al-Bashir said the ministry’s role is not limited to securing petroleum products, but also includes finding solutions to reduce the impact of energy costs on citizens and on the agricultural, productive, and service sectors.
He said the priorities for the coming period are to ensure the availability of petroleum products and uninterrupted supplies, increase domestic production, deliver subsidies to eligible recipients, and reduce burdens on citizens and productive sectors as much as possible.
According to the ministry, restarting the local refineries and introducing multiple diesel grades are among the measures intended to provide different price options in the market. Their actual impact, however, will depend on the distribution mechanism, whether subsidized diesel reaches the targeted groups, and whether domestic production can cover a larger share of demand in the coming period.