Why did the Syrian Petroleum Company roll back “dollarizing” fuel station bills?
The Syrian Petroleum Company allowed fuel station owners, on Wednesday, March 25, to pay for petroleum products in Syrian pounds.
The decision came in response to a sit-in organized by a number of private fuel station owners from various governorates in front of the Ministry of Energy in Damascus on Tuesday, March 24, protesting the “dollarization” of payments for petroleum products.
Protesters called for canceling transactions in US dollars and returning to the Syrian pound, or at least giving them the option between the two. They sell fuel in Syrian pounds but are required to pay in dollars to the Central Bank, which, they said, results in significant financial losses.
Fuel station owners participating in the protest said their profit margins are negligible and barely cover operating costs, calling for margins of 6% to 7%.
One protester said that temperature differences in fuel between the Baniyas refinery and the Homs refinery are “irregular,” leading to losses ranging between 100 and 150 liters, which are effectively deducted from the station owner’s account.
According to a statement by the Syrian Petroleum Company, the measure issued today aims to facilitate operations for station owners and ease the challenges of securing foreign currency.
The decision was issued in coordination with the Ministry of Energy, the Central Bank of Syria, and relevant authorities, under the supervision of the company’s CEO, Youssef Qablawi, the statement said. It comes within efforts to stabilize the fuel market and reduce burdens on fuel station owners.
The company also affirmed its commitment to taking all necessary measures to ensure stable supplies and meet local market needs.
Economic expert Dr.Ali Mohammed told Enab Baladi that the previous decision requiring fuel station owners to pay for petroleum products in dollars contributed to the depreciation of the Syrian pound, with the exchange rate rising by about 500 Syrian pounds within days.
He considered this development expected, alongside the global rise of the US dollar, which may also have contributed.
Mohammed added that reversing the decision and allowing payments in Syrian pounds to ease foreign currency constraints is a “correct and logical” step.
He also highlighted the importance of requiring stations to issue daily statements of payments from fuel sales, whether in dollars or Syrian pounds, and submit them as-is to the relevant authorities as payment for these products, without increasing demand for foreign currency in the market at present.
Allowing payment in Syrian pounds is seen as a practical step toward providing greater flexibility for station owners. This could positively impact the continuity of their operations and help meet the growing demand for petroleum products, supporting market stability and serving the public interest.
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