Monthly $219 million deficit forced us to raise fuel prices: Official

Official data obtained by Zaman al-Wasl reveals that the public treasury incurs monthly losses exceeding $219 million due to subsidies on petroleum products, at a time when the country is facing a severe supply crisis and a shortage in local refining operations.

According to the source, the Syrian government faces an economic dilemma stemming from taking over dilapidated oil wells in the eastern provinces, which suffered from neglect and a lack of maintenance during the years of control by the SDF factions and the American occupation.

Informed sources confirm that achieving self-sufficiency requires two years of development, leaving the country at the mercy of global market fluctuations.

Oil Deficit Figures

The financial data illustrates the size of the gap between import and local selling prices:

• Diesel losses: $135 million monthly.

• Fuel oil losses: $51 million monthly.

• Gasoline losses: $23 million monthly.

• Gas losses: $10 million monthly.

The global price of a barrel of oil has risen from $67 before the Iran-US war to levels ranging between $100 and $103, with the state bearing additional costs for shipping, refining, and distribution.

The country currently produces 100,000 barrels per day, 70% of which is allocated to support the eastern provinces at cost price, according to a government source. The remaining 30% is exported because it is "heavy crude" that cannot be refined in local refineries.

"Fixing prices amidst the global market fluctuations has drained the treasury, while most countries adopt a daily pricing policy linked to global exchanges."

Lack of Government Coordination

The decision to increase prices has raised questions about the absence of joint institutional action:

1. Food Security: There is no evidence of coordination with the Ministry of Agriculture to study the impact of the diesel price increase on the wheat crop at the beginning of the season.

2. Transportation Crisis: Neither the Ministry of Transportation nor local administration has issued a unified fare to prevent market chaos and the exploitation of citizens by drivers.

3. Inflation: The joint economic team responsible for studying the direct and indirect repercussions on the prices of basic commodities is absent.

The administrative confusion is evident in the issuance of the decision without a proactive plan to absorb the social and economic shock, which places the concerned ministries in front of the responsibility of accountability for the lack of coordination in a file that affects daily livelihood security.