Syrian Energy Minister Mohammad al-Bashir announced the adoption of a new mechanism for supplying diesel to the market, based on offering several grades with different specifications and prices depending on the intended use, instead of limiting the market to a single high-specification, high-cost product.
Al-Bashir said the proposal was approved following a meeting with President Ahmad al-Sharaa, during which a number of practical alternatives were discussed to address rising fuel costs and pressures affecting energy markets.
Under the new mechanism, diesel will be offered at three price levels: SYP 115 per liter for subsidized diesel allocated to heating, agriculture, and eligible beneficiaries; SYP 150 per liter for a grade intended for selected production and service activities as well as engineering and heavy machinery; while standard-specification diesel will continue to be sold at SYP 175 per liter.
A government source had earlier confirmed on Thursday that authorities were moving toward introducing three diesel grades at these prices, with the lowest-priced category designated for heating and agricultural use.
35,000 Barrels per Day to Supply Subsidized Diesel
Al-Bashir said the government has decided to restart a number of local refineries with a combined processing capacity of up to 35,000 barrels of crude oil per day, under the management and supervision of the Syrian Petroleum Company.
According to the minister, the entire diesel output from these refineries will be allocated to supplying the subsidized grade priced at SYP 115 per liter, which will be directed toward heating, agriculture, and eligible groups.
The move comes amid limited domestic oil production compared with overall demand. Al-Bashir recently said Syria produces around 100,000 barrels of oil per day, while the country’s needs are estimated at approximately 350,000 barrels per day.
Diesel at SYP 150 for Production and Service Uses
The energy minister also said the government had managed, in cooperation with what he described as “brotherly countries,” to secure another grade of diesel that will be sold at SYP 150 per liter.
This category will be allocated to selected production and service activities, in addition to engineering vehicles and heavy machinery, in an effort to reduce the impact of higher fuel prices on sectors that depend directly on diesel.
Standard-specification diesel, meanwhile, will continue to be sold at SYP 175 per liter, making it the highest-priced category under the new pricing structure.
Diesel Cost Estimated at SYP 206 per Liter
Both Energy Minister Mohammad al-Bashir and Syrian Petroleum Company CEO Youssef Qablawi said the cost of a liter of diesel currently sold for SYP 175 stands at around SYP 206.
Qablawi said this means the current selling price remains below the actual cost borne by the company, adding that declining revenues at the Syrian Petroleum Company have created difficulties in securing the funds required for the state treasury.
The figures indicate that the government continues to absorb part of the cost of diesel even within the highest-priced category, according to the official statements.
Implementation Plan and Designated Fuel Stations
Qablawi said the Syrian Petroleum Company had begun preparing the implementation plan for the new mechanism following discussions with the Ministry of Energy.
He added that technical teams had studied the operational details and potential obstacles in order to ensure that the new distribution system can be implemented in an organized manner.
Qablawi also said that designated fuel stations will be responsible for selling petroleum products refined at the local refineries, indicating that the subsidized diesel priced at SYP 115 per liter may not necessarily be available at all fuel stations.
The ministry has not yet announced full details regarding eligibility criteria for subsidized diesel, the names of participating fuel stations, or the quantities that will be allocated to each sector.
Comprehensive Maintenance at Banias Refinery
The energy minister also linked the current developments to maintenance work at the Banias Refinery, saying the facility requires a comprehensive overhaul involving the rehabilitation and replacement of several major units and pieces of equipment.
Al-Bashir said global energy markets are going through exceptional conditions due to declining oil and gas production, disruptions affecting energy corridors, and reduced refining capacity as a result of conflicts and instability, alongside growing demand for petroleum products.
According to the minister, these factors have driven up global fuel prices as well as transportation, shipping, and insurance costs, with direct repercussions for the Syrian market.
Shift from a Uniform Price to Usage-Based Pricing
The new decisions effectively mark a shift from a single diesel price toward a system in which pricing varies according to product specifications and intended use.
According to the Ministry of Energy, the model is intended to provide lower-cost fuel to more sensitive sectors, particularly heating and agriculture, while allocating other grades to production activities, heavy machinery, and vehicles that require higher fuel specifications.
The distribution mechanism, allocated quantities for each category, and the eligibility requirements for accessing diesel at SYP 115 per liter remain among the main details expected to be clarified in the Syrian Petroleum Company’s implementation plan.