Energy Minister Mohammed Al Bashir said the government recognised that higher energy prices “have a direct impact on people’s livelihoods and on the agricultural, production and service sectors”.
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 will remain at 175 pounds per litre, while petrol and gas prices will 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 or how much it will cost the government. The decision followed a meeting with President Ahmad Al Shara on Wednesday night to discuss the fuel crisis that has triggered protests, presenting 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. The increase 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 price rise be reversed.
The ministry said the increase in petroleum product costs reflected rising global oil prices and coincided with the temporary shutdown of the Baniyas refinery for a major overhaul. The project is expected to increase the refinery’s capacity to about 130,000 barrels per day, but the shutdown 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. Diesel is also crucial for transport, adding further strain to 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.
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