LONDON(RAHNUMA): Syria said on Thursday it has cut the price of industrial fuel oil to $400 per tonne from $475 in a bid to lower production costs, support manufacturers and boost the competitiveness of domestic industries.
Energy Minister Mohammed Al-Bashir told the state-run SANA news agency the move is intended to ease financial pressure on factories, sustain industrial output and improve market stability.
“The reduction in the price of industrial fuel oil is part of the government’s efforts to support the industrial sector, encourage manufacturers, strengthen the competitiveness of Syrian products and ease the burden on production facilities,” Al-Bashir said.
He added that the measure would also benefit consumers by increasing the supply of locally produced goods at lower prices and improved quality.
“Supporting industry is a direct investment in the national economy,” he said. “Lower production costs improve the competitiveness of Syrian products and bring us closer to greater market stability.”
Al-Bashir also said consumers stand to benefit as increased industrial activity is expected to expand the supply of locally produced goods at lower prices and improved quality.
More broadly, he said the government plans additional measures to support productive sectors and create a more stable environment for industry and investment as part of efforts to promote economic recovery.
The policy comes against the backdrop of a severely weakened economy. Before the civil war there, Syria relied heavily on agriculture, oil and gas, textiles, food processing and cement manufacturing. However, more than a decade of war has significantly damaged these sectors.
The conflict, which began in March 2011, devastated production capacity by destroying factories, power networks, roads and housing, while displacing millions of people.
As a result, Syria’s economy has become increasingly dependent on imports. The World Bank has said conflict-related disruptions sharply reduced foreign trade while domestic industrial and agricultural output collapsed.
Oil revenues, once a key source of income, also declined sharply. Reuters reported last year that exports fell steeply after 2011.
Before the war, Syria reportedly exported about 380,000 barrels per day of oil. During the conflict, various groups, including Daesh and the Kurdish-led Syrian Democratic Forces, seized control of oil fields. While the now-dissolved SDF had signed agreements with US companies, international sanctions complicated exports.
