Syria removes petrol subsidies from large cars

The Syrian Minister of Petroleum and Mineral Resources, Ali Ghanem, yesterday banned cars with engines larger than 2,000 CC from receiving subsidised gasoline as part of new austerity measures to curb the country’s hydrocarbon crisis, state-run SANA news agency reported.

Ghanem said the decision also includes anyone who owns more than one car whether private citizens or companies; adding that the revenues will be reallocated to public services and development projects.

Prior to the decision, private cars, regardless of their engine capacity, had been entitled to 100 litres of subsidised gasoline per month.

Under the new regulations, car owners have to secure fuel at the unsubsidised rate, which is fixed at 9,000 Syrian pounds (approximately $12) per 20 litres.

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The Syrian minister said the price of oil derivatives and crude oil supplied to Syria is higher than global oil prices.

Earlier, Ghanem said his country needs 146,000 barrels of crude oil per day, while the country produces only 24,000 barrels per day.

Before 2011, Syria used to produce 400,000 barrels of oil per day. However, the sector has suffered major losses, especially after losing major oil and gas fields to the US-backed Syrian Democratic Forces north and east of the country.

According to the UN estimates, a majority of Syrians live below the poverty line while the World Food Program estimates that food prices will increase by 107 per cent in one year.