Syrians Protest Rising Petroleum Prices

Policy Brief Program

August 2023

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Protests:

• On Thursday, August 17, hundreds of residents from in and around Suwayda, Syria protested against poor living and economic conditions in the country, in particular the rising price of fuel.
  • Demonstrators blocked roads and burned tires, while chanting anti-regime rhetoric. 
• A day prior, the Syrian government “raised prices of gasoline and other petroleum products again” amid gradual lifts on “subsidies to boost public finances.”
  • The price of gasoline rose to 8,000 Syrian pounds from 3,000, and the price of fuel oil increased to 2,000 pounds from 700. 
  • The Syrian pound fell to 15,000 pounds to a dollar, down from 7,000 pounds to the dollar at the beginning of the year. 
• The protests occurred in a portion of the country controlled by the Syrian government.
  • Protests rarely occur in portions of the country under government control due to strong state repression.

Subsidies:

• In the past year, Syria has lifted subsidies to help improve the government’s deficit.
  • For years the government had subsidized fuel, gasoline, and grain. 
  • Lifting these subsidies is a way for the cash-strapped government to reduce spending. 
• Subsidies have been a key form of economic aid in government-controlled areas, but the government is hoping to replace the expensive system with a smart-card ration system. 
  • Officials have claimed that this new system would only affect the wealthiest Syrians, while easing supply shortages and improving corruption. 
  • However, lifting subsidies has decreased purchasing power for millions of Syrians, leading to protests. 
• The Syrian government announced last week that it was doubling public sector salaries and pensions in an effort to combat the rising cost of living. 
  • These moves reportedly cannot keep pace with hyperinflation and the record depreciation of the Syrian pound. 

Background on the Syrian Economy:

• The Syrian economy has suffered since the outbreak of the civil war in 2011 following protests against President Bashar al-Assad and his regime.
  • Before the civil war, the Syrian pound traded at 47 to the dollar. 
  • Western sanctions following the outbreak of the war and the February 2023 earthquake have further impacted the economy. 

Images: Vyacheslav Argenberg, Anjci