Syria Temporarily Raises Fuel Prices Until Local Supplies Resume

The Permanent Committee for Setting Prices of Petroleum Products and Mineral Resources in Syria announced a rise in fuel prices, effective from Sunday, with the Ministry of Energy justifying the step by citing increased global costs of securing these products and ensuring continued supply within the country.

According to the new price bulletin, the price of 95-octane gasoline is now 195 Syrian pounds, 90-octane gasoline at 185 pounds, diesel at 175 pounds, household gas at 1,600 pounds, industrial gas at 2,560 pounds, and heavy fuel oil at 52,800 pounds.

Previously, the price of 95-octane gasoline was 145 Syrian pounds, meaning the increase amounts to about 50 pounds. The official exchange rate of the dollar against the Syrian pound stands at 122 pounds according to the latest update from the Central Bank, while the parallel market rate is 132 pounds.

The Syrian Ministry of Energy justified the rise in petroleum product prices as a result of an "exceptional" increase in global procurement costs, emphasizing that these adjustments are temporary, aimed at ensuring continuous supply and availability in the local market.

As reported by the official SANA news agency on Sunday, the ministry explained that the Syrian market is affected by rising international costs for securing gasoline, diesel, and fuel oil, while the Banias refinery in western Syria has entered a comprehensive maintenance phase expected to last about two months, increasing the temporary need for importing ready-made petroleum products.

The ministry confirmed that the current price hike is not solely linked to crude oil prices, noting that refined product markets face pressure due to reduced supply, disruptions in refining capacity, and rising transportation, shipping, and insurance costs—factors that collectively increase the cost of securing these products for the Syrian market.

According to prices monitored by the Syrian Ministry of Energy, the price of a ton of diesel is approaching 1,400 dollars, gasoline nearing 1,350 dollars, while Brent crude oil prices hover around levels close to 100 dollars per barrel.

Global Price Pressures

Refined product markets are facing mounting pressures due to damage to refining facilities in Russia and the Middle East, disruptions in supply routes and navigation through the Strait of Hormuz, Bab-el-Mandeb, the Red Sea, and the Gulf of Aden, along with rising shipping and insurance costs, limited supply and inventories, and heightened competition for gasoline and diesel—leading to faster price increases in refined products than in crude oil.

The Syrian Ministry of Energy noted that the country’s current daily demand for oil and its derivatives reaches approximately 300,000 barrels, compared to a local crude oil production of about 100,000 barrels per day, necessitating partial coverage through imports.

It added that domestic crude production does not mean all volumes can be converted into gasoline and diesel, as part of Syrian crude is heavy and not fully compatible with available refining capacities. Additionally, limited quantities of unsuitable crude are exported, while imports of required finished products continue in parallel.

According to the Ministry of Energy, daily diesel demand in Syria currently stands at around 7.72 million liters, of which 3.09 million liters come from local production and 4.63 million liters are imported—meaning nearly 60% of supply depends on imports.

For gasoline, the average daily supply is about 2.32 million liters, with 1.54 million liters produced locally and approximately 775,000 liters imported. Meanwhile, the average daily supply of household gas reaches around 912 tons, with significant reliance on imports.

Banias Refinery Capacity

The Syrian Ministry of Energy highlighted that the Banias refinery has entered a comprehensive maintenance process expected to last about two months, reducing local refining capacity during this period and increasing the need to purchase ready-made products from external markets.

The ministry emphasized that addressing this situation is not intended to permanently raise fuel prices, but rather to manage a temporary gap between the cost of securing products and their local selling price, ensuring continuous financing of successive shipments and sustained availability in the market.

The Syrian Petroleum Company bears responsibility for meeting market demand and ensuring continuous supply. With rising global costs for ready-made products and increased import needs during the Banias refinery maintenance, the gap between purchase cost and local selling price widens.

SANA quoted the ministry as stating that the price adjustment aims to maintain the supply financing cycle—from purchasing a shipment, selling it, distributing it, to securing the liquidity needed to buy the next shipment—preventing the cost gap from turning into a material shortage.

The ministry also explained that these pressures coincide with substantial financial obligations in the energy sector, noting that the outstanding debts owed by the Syrian Electricity Company to the Syrian Petroleum Company reached approximately 1.7 billion dollars in 2026 for gas and energy carriers.

Price Review

Relatedly, the Syrian Ministry of Energy clarified that "price adjustments are temporary and tied to exceptional circumstances," noting that costs and prices will remain under review based on developments in global markets and the restoration of local refining capacity after the completion of Banias refinery maintenance.

It stated that reducing Syria’s dependence on foreign sources requires increasing domestic oil and gas production, rehabilitating fields and wells, expanding refining capacity, upgrading refineries and transport infrastructure and strategic facilities, enhancing storage, securing supply, diversifying supply sources, attracting investments and partnerships in the oil and gas sector.

As reported by SANA, the Ministry of Energy affirmed that boosting domestic production and refining in Syria would help reduce imports, lessen the impact of global shocks on the Syrian market, and simultaneously ensure continued supply of gasoline, diesel, and gas to the market during the current phase.