Living costs and service crises worsen in Hasakah

Hasakah province is experiencing successive crises across several service sectors, amid complaints over rising prices for bread, transportation, fuel and electricity, as well as the new currency crisis and the failure to pay farmers’ dues.

These crises have emerged alongside the transitional government’s takeover of the energy and fuel sectors, which had previously been administered by the Autonomous Administration through its service institutions over the past years.

This period has also coincided with the final stages of the integration process between the Syrian Democratic Forces and the transitional government, following the SDF’s announcement that it had ended its role as an independent military force and joined the Syrian army.

Over the past years, the Autonomous Administration had managed several service sectors, including the distribution of subsidized diesel, bread and transportation, the purchase of wheat crops, the operation of generators, and other service institutions, through its own mechanisms for administering the region and organizing the distribution of resources and wealth among residents.

With the management of these sectors transferred to the transitional government, crises related to prices, distribution mechanisms and the availability of essential goods have emerged, while residents say wages have not increased in line with the rise in the prices of services and basic commodities.

According to information monitored by our agency in recent months, price increases have affected key essential goods and services, particularly electricity, bread and fuel, which residents and observers of the province’s service sector say had previously been provided at subsidized or nominal prices under the Autonomous Administration.

Bread: Crisis Linked to the New Currency

The bread and flour crisis is among the most pressing problems facing residents of Hasakah province following the new currency crisis, which has been accompanied by difficulties in circulating the old currency and a shortage of the new currency in local markets.

In recent days, several bakeries have halted operations after the milling administration refused to sell flour in the old Syrian currency, limiting sales to the new Syrian currency or through the “Sham Cash” system.

Despite several meetings held in Hasakah and Damascus to address the crisis, the meetings ended without reaching a solution to resolve the problem.

In addition, bakeries previously received subsidized diesel. However, following the transfer of the energy sector to the transitional government, subsidies were lifted, forcing bakery owners to purchase diesel at market prices, with the price of one litre reaching 12,100 old Syrian pounds.

Amid the continuing crisis, a decision was issued to raise the price of a bundle of bread from 3,500 to 4,500 Syrian pounds, directly affecting residents.

Bakery owners say they have also incurred losses because they have been forced to exchange old Syrian currency for the new currency through exchange offices, losing around 80,000 Syrian pounds for every one million Syrian pounds exchanged.

Residents, however, say they are bearing the greatest burden, as they are forced to absorb the increase in the price of a bundle of bread, which has risen by more than 30 percent from its previous price.

Transportation: Rising Fuel Prices and the Absence of Stable Fares

The impact of ending fuel subsidies has not been limited to the bakery sector but has also extended to transportation, where fares have risen significantly following the withdrawal of service subsidies for diesel.

In this context, Talal Hussein, head of the tourist bus station in Qamishlo, says they are unable to control transportation fares because drivers purchase diesel from private fuel stations, amid a lack of oversight and uniform pricing for diesel across stations.

Hussein adds that repeated government decisions, along with the continued diesel shortages in the province, have made it difficult for owners of shared taxis to regulate transportation fares.

He notes that the fare from Qamishlo to Amuda stood at 8,000 Syrian pounds under the Autonomous Administration, but rose to 20,000 Syrian pounds after the transitional government took over. He explains that shared-taxi owners often cannot control fares because of major fluctuations and repeated increases in fuel prices in recent months.

Urban Transportation: From 200 to 5,000 Pounds

Transportation fares within Qamishlo have also risen steadily over the past several years.

Several drivers told ANHA Agency that the withdrawal of service subsidies for diesel has created a major crisis for both them and residents.

The drivers say that in 2022, fares on routes serving Hilaliyah, Al-Tay, Al-Hizam, Al-Kornish and other areas stood at 200 Syrian pounds before gradually rising to 500, then 1,000 and 2,000 pounds, reaching 5,000 pounds after the integration of the Fuel Institution with the Ministry of Energy under the transitional government was completed.

The drivers add that the Autonomous Administration had provided them with a litre of diesel for 525 Syrian pounds, while the price today stands at 13,300 old Syrian pounds, equivalent to 121 new Syrian pounds.

The drivers directly link these increases to rising fuel prices and changes in the mechanism for obtaining fuel, stressing that this has driven up transportation costs and affected residents who rely on public transport on a daily basis.

New Currency Crisis: An Additional Burden on Residents

Alongside the crises affecting bread, fuel and transportation, Hasakah province is facing another crisis linked to the replacement of the old Syrian currency with the new currency.

Residents say the current currency-exchange mechanism has created significant difficulties, particularly because exchange centers are limited to one in Qamishlo and another in Hasakah. This has resulted in overcrowding and made it difficult for residents seeking to exchange their money.

Residents also point to insufficient quantities of the new currency at these centers, as well as reliance on the “Sham Cash” system for a number of transactions, adding further burdens and costs for residents.

Residents say the province continues to suffer from the repeated consequences of economic and service policies adopted by the transitional government, while the current currency-exchange mechanism has added another burden to the existing living crises.

Electricity: Another Crisis in the Province

The electricity sector in Hasakah province is also facing an ongoing crisis, with residents relying primarily on private generators to meet their electricity needs.

With the withdrawal of service subsidies for diesel following the transfer of control over energy resources in the Jazira region to the transitional government, rising fuel prices have increased the cost of operating private generators and, consequently, the price of amperes paid by residents.

One resident told ANHA Agency that the price of one ampere under the Autonomous Administration stood at 15,000 old Syrian pounds, equivalent to around $1. Following the withdrawal of diesel subsidies, the price rose to around $10 per ampere, according to the latest decision issued by the Fuel Directorate in Qamishlo.

The electricity crisis remains directly linked to the fuel crisis, as most private generators rely on diesel. Any increase in the price or shortage of diesel therefore quickly translates into higher electricity costs for residents.

Wheat: Lower Prices and Unpaid dues

The repercussions of the new phase have not been limited to the service sectors but have also extended to agriculture, particularly wheat, one of Hasakah province’s main crops.

The transitional government set the purchase price of wheat at 46,000 new Syrian pounds per tonne, prompting widespread objections from farmers who said the price did not cover rising production costs.

By contrast, the price of a tonne of wheat during the previous season stood at $420, while agricultural diesel was also provided at subsidized prices.

Farmers say the price difference between the two years, coupled with rising production costs, has made wheat cultivation increasingly difficult, particularly amid continued increases in fuel and agricultural input prices.

Farmers’ complaints are not limited to the lower purchase price. They say the transitional government has yet to pay their financial dues, further increasing their burdens and leaving them with financial obligations related to the agricultural season.

Accumulating Crises and Questions over the New Administration

The simultaneous crises affecting bread, fuel, transportation, electricity, currency and agriculture reveal the scale of the challenges facing Hasakah province at a time when the administration of key sectors has shifted from the Autonomous Administration’s institutions to the transitional government.

Residents say the way recent government decisions have been implemented has contributed to worsening the crises in the region, particularly amid the lack of swift solutions to problems involving bread, diesel, currency and transportation fares.

Residents are calling for government decisions and measures to take into account the province’s specific economic and service conditions and to ensure the continued provision of essential services at prices that match residents’ purchasing power, while safeguarding the rights of workers and farmers and ensuring that their dues are paid.

As these crises continue, residents are left questioning what the next phase will look like and whether the transitional government will be able to address the accumulated service and economic challenges, rather than allowing crises to shift from one sector to another. They also question whether the new measures will improve the quality of services or impose further burdens on the province’s residents.

a.k

ANHA