Tehran doubled the price of Iranian oil exports to Syria, and asked Damascus to pay the value of future shipments in advance, amid the severe fuel crisis in Syria.
Officials in Iran informed their Syrian counterparts of an increase in the price of crude that Damascus is buying to more than $70 a barrel from $30 previously, according to statements by sources close to the matter to the Wall Street Journal today, Sunday, January 15, 2023.
Syria is suffering the worst fuel crisis since the conflict began more than 10 years ago. This led to long lines of citizens queuing in front of gas stations in the capital, Damascus, every day, to obtain any quantity.
The cost of transportation jumped, and the rest of the commodities followed suit. What increased pressure on an ailing economy; This forced the government to close some of its administrative offices for several days, last month. to save energy.
Several factories have also closed their doors due to their inability to obtain the fuel needed for operation, amid the scarcity of electricity, according to what was seen by the specialized energy platform.
Iran’s suffering
The suffering of the Iranian economy has begun to negatively affect its allies, led by Syria.
Tehran turned to the opposite. As it began to amend a transaction that was characterized by providing various facilities to Damascus in the field of Iranian oil exports to Syria, by reducing prices and delivering crude shipments before payment. To expand its influence in the troubled Arab country.
Iran and Russia are the largest military supporters of Syrian President Bashar al-Assad against the popular revolution that began during the so-called “Arab Spring” in 2011.
Iranian officials told their Syrian counterparts that Tehran would not provide them with new oil shipments before paying their value, at double prices.
Burning pistachio shells
Syria is facing an acute fuel crisis, which has prompted many poor people to get heat in this cold winter, and cook by burning wood and pistachio husks.
Syrians used to rely on electricity to run heating devices, but the recent fuel crisis has jumped prices 5-fold in 2022.
The price jump resulted in a further deterioration in the standard of living of most Syrian families, who suffer from multiple problems due to high inflation rates and the depreciation of the local currency to record levels in December 2022.
The fuel crisis angered some citizens, who took to the streets. Protesting this situation against the government, despite fears of regime repression.
“The fuel crisis in Syria is the worst that exists in the memory of citizens,” said Fabrice Blanche, assistant professor of the Middle East Department at the University of Lyon in France.
Iranian oil exports to Syria
In a meeting between Iranian Foreign Minister Hossein Amir Abdollahian and Syrian President Bashar al-Assad, the former promised to continue strong relations with Damascus, according to local media in both countries.
“We ourselves are suffering now, so there is no logic in selling oil to Syria at a low price,” said Hamid Hosseini, spokesman for the Tehran Oil, Gas and Petrochemical Exporters’ Association.
The inflation rate in Iran has increased by 50% in the latest official statistics, and more than a third of the population lives in poverty now, compared to 20% in 2015.
Officials from the two countries did not comment on the unofficial statements of increasing the price of Iranian oil exports to Syria, but indications show that imports did not increase last year (2022) compared to the previous year (2021), despite Damascus repeatedly asking Iran to do so.
Iranian oil shipments
Syria receives two shipments of Iranian oil per month, but the next shipment will not leave Tehran for Syria before March 11, 2023, according to data from the shipping company “Kpler”.
Iran offers significant price discounts to its customers due to the sanctions imposed on it. What makes it difficult to market its crude, especially after the suspension of negotiations to revive the nuclear agreement with America in 2022.
However, Tehran has begun to search for new customers who pay the value of its exports in advance, and on top of these comes China, which gets one million barrels per day.
Syria produces small amounts of oil from fields in the north of the country, but supplies from that region have been cut off, in recent months, due to its neighbor Turkey’s military campaign against the Kurds.
And while Iran was preoccupied with its economic crisis and searching for richer clients for its oil to enhance its financial position, and Russia was engaged in its war against Ukraine, the Syrian president may resort to seeking help from countries that are in enmity with his country’s traditional allies such as: Saudi Arabia, America and the UAE, according to analysts.
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