Syrian Fuel Prices Soar Amid Refinery Maintenance and Global Market Pressures

The Syrian government announced an increase in fuel prices on Sunday, citing global market pressures and a production-import gap. The Standing Committee for Setting Prices of Petroleum Products and Mineral Resources raised the price of 95-octane gasoline to approximately 195 Syrian pounds per liter, while 90-octane gasoline stands at 185 pounds per liter. Diesel fuel was priced at 175 Syrian pounds per liter.

The price adjustments come as the Baniyas refinery undergoes comprehensive maintenance, expected to last two months, which has reduced domestic production and created a need for imports of refined petroleum products. The Ministry of Energy attributed the rise in prices to an 'exceptional increase' in global costs of securing these products, emphasizing that the adjustments are temporary.

The Syrian Ministry of Energy revealed that the country's daily requirement for oil and petroleum products stands at approximately 300,000 barrels, while actual domestic crude oil production does not exceed 100,000 barrels per day. This gap has driven up the cost of refined products at a much faster rate than that of crude oil.

The price of a liter of 95-octane gasoline stood at 145 liras prior to these changes, meaning the increase amounts to approximately 50 Syrian liras per liter. The Ministry emphasized that the rise is not exclusively linked to the price of crude oil but rather the refined derivatives markets are witnessing enormous pressure resulting from the decline in supply and the disruption of global refining capacities.

Global and local petroleum product markets are facing escalating crises due to damage to and reduced efficiency of refining facilities in key regions, such as Russia and the Middle East. Furthermore, there are ongoing disruptions to supply routes and maritime navigation in critical areas like the Strait of Hormuz, the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden.