Syria has cut its costly fuel subsidy programme, in an attempt to put down a booming black market fuel trade that has grown in the country, according to news site Reuters.
Syria has seen a wave of anti-corruption protests as fuel and electricity shortages play havoc with the country’s infrastructure. Protesters claim that criminals are reselling subsidised fuel at far higher rates on the black market.
Syria’s two main oil refineries in Homs and Banyas now process a fraction of their pre-war capacity, officials say.
“The refineries are working at less than 10 percent of their capacity because of the lack of crude oil,” Salman Hayan, deputy economy minister told state television.
Government officials believe that the removal of subsidies will go someway to stamping out the black market trade.
“This reduces corruption and there is no more reason for people to find innovative ways to smuggle diesel since the price is now at cost and close to international prices,” said Talal Barazi, governor of the city of Homs.
Syria’s economy has been devastated by its civil war. Prior to the conflict, the country produced at least 380,000 barrels per day of crude oil, half of which was exported.
“Instead of the oil sector being a major source of financing from the treasury it has now become a heavy burden,” Oil Minister Suleiman al-Abbas told state television.
