Rising prices put increasing pressure on Syrians; deepen market stagnation

Syrian markets are witnessing increasing and frequent price hikes for many goods following manufacturers’ submission of cost data related to their products and the recalculation of expenses associated with fuel prices, transportation costs, and profit margins, amid rapidly changing production costs and prices.

Industrialist Saeed Al-Salem from Damascus told ANHA agency that he had submitted the cost data for the products he manufactures, explaining that the increase ranged between 20 and 25 percent for each product.

He added that submitting cost data to the relevant authorities at the Ministry of Economy and Industry is followed by the introduction of new prices for the products and the issuance of new invoices. He noted that the old products in his possession had been repriced according to the new prices and that he had circulated these prices to all suppliers.

Al-Salem explained that the near-daily changes in commodity prices are linked, in his view, to the depreciation of the Syrian pound against the US dollar, in addition to disruptions in the Strait of Hormuz and the resulting increases in transportation and shipping costs, as well as the economic conditions facing Syria.

He said importers have begun pricing raw materials almost instantaneously in line with rising global transportation costs, which is reflected in the prices of finished products. He warned that if this situation continues, it could lead to further confusion and instability in the markets.

At the same time, Al-Salem pointed out that industrialist's face violations and penalties if they fail to submit cost data used to price materials, placing them in a difficult position between continuously changing costs and the requirements of regulatory authorities.

Sales limited to necessities

At the Al-Midan market in Damascus, dairy and cheese trader Ziad Othman said that buying and selling activity had largely become limited to essential and daily needs, amid a decline in households’ ability to purchase their usual quantities.

Othman explained that some families ask to buy cooking oil worth 5,000 old Syrian pounds, while the price per kilogram has reached 80,000 pounds. This forces the trader to sell in small quantities and place the oil in bags, despite the fact that this requires time and effort and results in waste with little financial return.

He said many families can no longer afford to buy goods by the kilogram or by the tin, even though purchasing larger quantities is more economical, adding that people have begun living “day by day.”

These circumstances have also affected the relationship between traders and customers. Othman has placed several signs inside his shop reading: “No credit, please.”

During his remarks, he pointed to his debt ledger, saying it contained millions of Syrian pounds in unpaid credit sales. He explained that some debtors had been tenants who left the neighborhood without him being able to reach them, while others ask to postpone payment or are waiting for money transfers from relatives abroad.

He added that people repeatedly come to him to buy their necessities on credit, including elderly people. Some even ask for an egg or a loaf of bread “for God’s sake,” noting that small retailers in working-class neighborhoods directly witness the scale of the hardship experienced by families.

Price lists changing more than once a day

The prices of vegetables and fruits monitored by ANHA's correspondents in the markets yesterday reflect the extent of the pressures facing Syrian households. The price of one kilogram of green beans reached around 40,000 Syrian pounds, okra 35,000, peas 30,000, and cowpeas 26,000. Field cucumbers were priced at around 9,000 pounds, tomatoes at 6,000, zucchini at 7,000, eggplant at 5,000, and potatoes at 5,500 pounds.

The price of one kilogram of garlic also reached around 30,000 pounds, dried onions 5,000, lemons 20,000, and green olives 25,000 pounds, with variations between markets and shops depending on quality, the source of the product, and transportation costs.

For his part, a former member of the Consumer Protection Association, who declined to reveal his name, confirmed that the markets were experiencing a state of disorder and uncertainty in pricing. He noted that industrialists were gradually raising the prices of goods, while some traders had already raised prices arbitrarily.

He said some traders had increased prices by nearly 40 percent, citing the prevailing state of chaos and the absence of final price lists issued by producers and suppliers.

He added that traders exchange price lists through private groups and that these lists are amended more than once during the day, particularly as the exchange rate changes. He noted that the US dollar had reached around 13,700 Syrian pounds on the parallel market, according to the prices circulating in the market while the article was being prepared.

These developments come at a time when a gap has emerged between the official exchange rate and the rate on the parallel market. The official bulletin issued by the Central Bank of Syria on September 20 listed the dollar at 121.50 Syrian pounds for buying and 122.50 pounds for selling, while the dollar on the parallel market, according to a local economic report published on the same day, was around 136.25 pounds for buying and 136.75 pounds for selling.

The former Consumer Protection Association member said that multiple prices and their frequent changes have a direct impact on market activity, which is already suffering from stagnation and declining sales, as consumers hesitate to buy or limit themselves to the bare minimum of their needs.

Growing social repercussions

In the same context, a social expert and lecturer at the Faculty of Education at Damascus University, who preferred not to disclose her name, confirmed that successive increases in the prices of goods had a significant impact on families’ lives. She said that continued pressure on living conditions is pushing broad segments of society toward increasingly severe levels of deprivation and poverty.

She cited transportation within Damascus as an example, noting that during a single journey she sees more than one passenger saying that they cannot afford the fare. Some passengers then intervene to pay the fare on their behalf, while others pay part of it and ask the driver to allow them to pay the remainder later.

She said one of the scenes that affected her most in Damascus was seeing a poor person at a popular restaurant serving fava beans and hummus asking to have the leftover food from a plate after its owners had finished their meal.

She added that some families have begun facing circumstances that force them to search for leftover food at restaurants or even in garbage containers, describing this as an indication of the depth of the social and economic crisis.

The expert warned that continued poverty and hunger, along with the declining ability to secure basic necessities, could lead to increased social tensions. She pointed to class disparities that have become increasingly visible in Syrian society, between groups whose economic circumstances have improved and others suffering from unemployment, lack of income, and difficulty securing food.

Higher fuel prices add new burdens

These developments coincided with an increase in the prices of petroleum products in Syria, effective September 13. Under the new price bulletin, 95-octane gasoline was set at 195 pounds, 90-octane gasoline at 185 pounds, diesel at 175 pounds, household gas at 1,600 pounds, and industrial gas at 2,560 pounds, in addition to other prices included in the bulletin.

The Ministry of Energy justified the decision by citing the rising global cost of securing petroleum products, coinciding with the Baniyas Refinery entering a comprehensive maintenance shutdown lasting approximately two months, which increased the need to import finished petroleum products. The ministry said the price adjustment was temporary and aimed at ensuring continued supplies and the availability of products in the domestic market.

Abdel Hamid Salat, Director of the Media Department at the Ministry of Energy, also explained that petroleum product prices are not fixed and are subject to upward and downward adjustments depending on changing costs and conditions in global markets.

Following protests in several parts of Syria over rising fuel prices, the ministry announced on September 17 that diesel would be offered at three different prices, including 115 pounds per liter for heating, agriculture, and certain eligible consumers, and 150 pounds for certain productive and service sectors. The price of standard-specification diesel remained at 175 pounds, while its actual cost, according to Minister Mohammad al-Bashir, stands at 206 pounds per liter.

Government: efforts underway to increase production and meet market needs

In the latest major government comment on the energy issue and its impact on living conditions, the People’s Assembly heard Energy Minister Mohammad al-Bashir on Sunday regarding the increase in petroleum product prices and the circumstances surrounding the issuance of the latest price bulletin.

Al-Bashir said the ministry is working to increase oil, gas, and electricity production, rehabilitate energy and water networks, and improve their efficiency. He announced that the ministry is targeting self-sufficiency in oil by 2028, while it needs approximately seven years for gas production to reach what he described as satisfactory levels.

Regarding electricity, the minister said electricity generation had increased to around 3,500 megawatts, compared with 915 megawatts when the government began its work, and that electricity supply had reached between 18 and 20 hours per day in most provinces, according to SANA’s report of his remarks before the People’s Assembly.

This comes at a time when the government maintains that part of the current pressure is linked to the increase in global energy costs, while market data and testimony from industrialists and traders indicate that these costs are being passed on to the prices of goods, transportation, and services.

Six Syrian provinces had witnessed protests following the petroleum product price bulletin issued on September 13, which raised the prices of some products by between 25 and 40 percent, according to what Hawar News Agency correspondents reported at the time.

The testimonies of industrialists, traders, and consumers in Damascus, alongside the latest government data, reveal the continued impact of rising energy and transportation costs and fluctuations in exchange rates on market activity. Meanwhile, low-income households are increasingly cutting back on their purchases and limiting themselves to daily necessities, further increasing pressure on a market already suffering from weak purchasing power and stagnation.

ANHA