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Fuel Price Cut Lowers Production Costs at Syrian Industrial City

SP Today News Desk
Fuel Price Cut Lowers Production Costs at Syrian Industrial City

Industrial fuel at Hasiyah Industrial City fell from $475 to about $400 per ton, trimming product costs 10 to 15 percent across textile and chemical plants a month after the change took effect.

Industrial Fuel Cut Takes Effect

A reduction in industrial fuel prices at Hasiyah Industrial City, from $475 to about $400 per ton, is filtering through production costs roughly one month after it took effect. The change is most visible in heavy industry, textiles, and chemicals, where fuel weighs heavily on operating expenses.

Samir Mansour, head of the investment department at the industrial city, said the cut has lowered operational costs, improved product quality, and widened room for expansion and exports while encouraging new investment and stimulating industrial activity.

Textile Mills Feel Relief

At automated fabric-preparation mills that burn three to four tons of fuel a day, the lower price has trimmed product value by roughly 10 to 15 percent, according to industrialist Ahmad Zakaria Jannat. High fuel costs had previously inflated production expenses across the sector, squeezing margins on finished cloth.

Chemical Producers Recalculate

In the chemical sector, fuel accounts for about 35 percent of production costs at one facility making medical, food, and industrial alcohol, its owner Hawash Sulebi said. The price decline reaches goods used as raw materials in perfumes, pharmaceuticals, and cleaning products, sectors sensitive to input costs.

Sharper Export Edge

Al-Sabagh Automated Textile Company, which consumes about 1,500 kilograms of fuel daily, said the drop to roughly $408 per ton — close to a 15 percent reduction — has strengthened the competitiveness of its output. Manager Yasser Sousi tied the saving directly to pricing on export markets, where Syrian goods compete on cost.

Policy Behind the Cut

The reduction traces to a directive issued in July by Energy Minister Muhammad Al-Bashir, who ordered industrial fuel prices lowered from $475 to $400 per ton to support manufacturers and ease burdens on production facilities. Officials framed the measure as a step to bolster the competitiveness of Syrian products and encourage industrial output.

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