Damascus: The repercussions of the global energy crisis are intensifying on the Syrian economy amid rising global oil prices and geopolitical tensions in the region. This places additional pressure on a country that relies heavily on importing its needs of petroleum products and gas while facing accumulated challenges in this vital sector.
According to Qatar News Agency, Advisor to the Syrian Minister of Economy and Industry Dr. Osama Kadi stated that the increase in oil prices from around $77 to over $100 per barrel directly impacts the Syrian economy. He noted that the country still needs to import part of its requirements, which leads to higher production costs and increased pressure on the daily cost of living for citizens.
Dr. Kadi also mentioned that the government is working to secure as much oil and gas as possible to meet needs without a significant increase in costs. However, Syria is not isolated from the world, as global food prices and shipping costs have risen due to higher energy prices. He suggested that these repercussions may be temporary with the end of the war on Iran and highlighted efforts to ease the burden on citizens by improving income levels or securing additional supplies of gas and oil from friendly countries.
Further emphasizing the challenges, Advisor to the Syrian Minister of Economy and Industry explained that rising energy prices lead to higher inflation rates, influencing various aspects of economic life. He stressed the importance of accelerating efforts to achieve local production that can meet daily needs, thereby enhancing stability in the energy sector. He noted the development of solar energy projects in several regions across Syria as a significant step towards overcoming these challenges.
Head of the Syrian Economists Syndicate Mohammad Al-Bakour confirmed in a similar statement to QNA that the global energy crisis is placing increasing pressure on the Syrian economy, a net importer of petroleum products. He outlined how any rise in oil prices significantly burdens the import bill, reflects in the trade balance deficit, and pressures the exchange rate of the Syrian pound. Rising energy costs drive inflation, affecting citizens' purchasing power and productive sectors, including agriculture and industry.
Director of Government Communications at the Syrian Ministry of Energy Ahmed Al-Sulaiman explained to QNA that the energy crisis in Syria results from situational factors and structural challenges, including damaged infrastructure and economic sanctions. The Ministry is working to rehabilitate facilities, secure supplies, and expand renewable energy to improve the situation gradually.
Head of the Finance and Banking Department at the Syrian Arab International University Dr. Mohammed Al Jashi highlighted that the crisis's global nature impacts Syria more due to additional factors like economic restrictions and exchange rate volatility. He suggested leveraging Syria's position as an energy transit corridor to generate revenues and ease the crisis's severity.
Researcher in international economics and finance Professor Mohammed Ghazal noted that rising energy prices lead to import sector challenges, supply chain disruptions, and inflationary pressures. He outlined possible scenarios, including leveraging Syria's geopolitical position as a regional energy transit corridor to alleviate economic pressures.