Syria Today | Subsidies bill falls by 96 percent

Subsidies bill falls by 96 percent

Syria’s oil subsidies bill fell by 96 percent last year, according to figures released by Mahrukat last month. Declining oil prices and increased retail prices were behind the fall.

Figures from Mahrukat, the state-owned company responsible for fuel distribution, show that Syria’s oil subsidies bill amounted to SYP 14.4bn (USD 313m) in 2009, down from SYP 372bn (USD 8.1bn) in 2008.

Demand for mazut, generally used in transportation and home heating, fell by almost 24 percent, from 8.4m cubic metres in 2008 to 6.4m cubic metres in 2009. Demand for fuel oil, generally used in industry and for power generation, fell by 12 percent over the same period.

Demand for petrol, however, rose by close to 8 percent over the same period, from 2.07m cubic metres in 2008 to 2.23m cubic metres in 2009. The rise in petrol consumption came despite higher retail prices at gas stations.

Sales by Mahrukat stood at SYP 287.5bn (USD 6.25bn) last year, while the company spent SYP 301.9bn (USD 6.56bn) on imports and oil products from the country’s two refineries, resulting in a deficit of SYP 14.4bn (USD 313m).

In 2008, company losses amounted to SYP 371.7bn (USD 8.1bn) after 603.6bn (USD 13.1bn) was spent on purchasing oil products and only SYP 231.9bn (USD 5bn) was clawed back in sales.

*in tonnes
Source: Mahrukat