Identifier
Created
Classification
Origin
08DAMASCUS209
2008-03-27 15:21:00
CONFIDENTIAL
Embassy Damascus
Cable title:
SECOND GASOLINE PRICE HIKE IN FIVE MONTHS
how-toVZCZCXYZ0855 PP RUEHWEB DE RUEHDM #0209 0871521 ZNY CCCCC ZZH P 271521Z MAR 08 FM AMEMBASSY DAMASCUS TO RUEHC/SECSTATE WASHDC PRIORITY 4776 INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1406 RUEHAM/AMEMBASSY AMMAN PRIORITY 7268 RUEHAK/AMEMBASSY ANKARA PRIORITY 5502 RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0815 RUEHLB/AMEMBASSY BEIRUT PRIORITY 4887 RUEHEG/AMEMBASSY CAIRO PRIORITY 3586 RUEHKU/AMEMBASSY KUWAIT PRIORITY 1313 RUEHMK/AMEMBASSY MANAMA PRIORITY 0659 RUEHRH/AMEMBASSY RIYADH PRIORITY 7962 RUEHTV/AMEMBASSY TEL AVIV PRIORITY 2124 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY
C O N F I D E N T I A L DAMASCUS 000209
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR SINGH/GAVITO
E.O. 12958: DECL: 03/27/2018
TAGS: ENRG EPET ETRD SY
SUBJECT: SECOND GASOLINE PRICE HIKE IN FIVE MONTHS
REF: A. 07 DAMASCUS 1075
B. 07 DAMASCUS 949
Classified By: Charge d'Affaires Michael Corbin for reasons 1.4(b,d)
C O N F I D E N T I A L DAMASCUS 000209
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR SINGH/GAVITO
E.O. 12958: DECL: 03/27/2018
TAGS: ENRG EPET ETRD SY
SUBJECT: SECOND GASOLINE PRICE HIKE IN FIVE MONTHS
REF: A. 07 DAMASCUS 1075
B. 07 DAMASCUS 949
Classified By: Charge d'Affaires Michael Corbin for reasons 1.4(b,d)
1. (SBU) At midnight on Friday, March 21, the SARG raised the
price of gasoline from 36 SP/liter (USD 2.72/gal) to 40
SP/liter (USD 3.02/gal),an increase of 11 percent,
throughout Syria. The last gasoline price increase occurred
on November 1, 2007, when the SARG raised the price from 30
SP/liter (USD 2.27/gal) to 36 SP/liter, so the cumulative
effect is a 33 percent increase in less than five months (ref
A).
2. (SBU) The timing of the price hike coincided with a long
weekend to observe the national holidays of the Prophet's
Birthday, Mother's Day and Easter. Consequently, Damascus
streets were uncharacteristically empty over the weekend as
many Syrians had either returned to family homes in the
countryside or traveled abroad for the holiday. As Syria
returned to work on Monday, March 24, however, the price
increase dominated conversation.
3. (SBU) Many Syrians believe that the latest gasoline price
increase portends an imminent (and long-anticipated) increase
in diesel prices (ref B),which will be reflected in higher
prices for most goods and services. In local media, an
unnamed SARG official attempted to ease public tensions this
week by explaining that the eventual diesel price increase
will be accompanied by a public sector salary increase, a
reduction in annual registration fees for gasoline-powered
vehicles, and the implementation of discounted diesel ration
cards for poorer families. Since Monday, anecdotal reports
indicate that long queues at gas stations have returned as
patrons attempt to top-off diesel reservoirs before higher
prices are implemented.
--------------
COMMENT
--------------
4. (C) Historically, the SARG has raised fuel prices on May
1. With the early onset of warmer weather this year, the
SARG may increase diesel prices sooner in order to provide
consumers an adjustment period before the demand for diesel
peaks in the hottest summer months. Power outages have
already been observed in Damascus this week, and there is
some expectation that they could become more frequent during
the summer. When and if the diesel price rise occurs, the
resulting increases in consumer prices will add to the
already high levels of unhappiness in Syria.
CORBIN
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR SINGH/GAVITO
E.O. 12958: DECL: 03/27/2018
TAGS: ENRG EPET ETRD SY
SUBJECT: SECOND GASOLINE PRICE HIKE IN FIVE MONTHS
REF: A. 07 DAMASCUS 1075
B. 07 DAMASCUS 949
Classified By: Charge d'Affaires Michael Corbin for reasons 1.4(b,d)
1. (SBU) At midnight on Friday, March 21, the SARG raised the
price of gasoline from 36 SP/liter (USD 2.72/gal) to 40
SP/liter (USD 3.02/gal),an increase of 11 percent,
throughout Syria. The last gasoline price increase occurred
on November 1, 2007, when the SARG raised the price from 30
SP/liter (USD 2.27/gal) to 36 SP/liter, so the cumulative
effect is a 33 percent increase in less than five months (ref
A).
2. (SBU) The timing of the price hike coincided with a long
weekend to observe the national holidays of the Prophet's
Birthday, Mother's Day and Easter. Consequently, Damascus
streets were uncharacteristically empty over the weekend as
many Syrians had either returned to family homes in the
countryside or traveled abroad for the holiday. As Syria
returned to work on Monday, March 24, however, the price
increase dominated conversation.
3. (SBU) Many Syrians believe that the latest gasoline price
increase portends an imminent (and long-anticipated) increase
in diesel prices (ref B),which will be reflected in higher
prices for most goods and services. In local media, an
unnamed SARG official attempted to ease public tensions this
week by explaining that the eventual diesel price increase
will be accompanied by a public sector salary increase, a
reduction in annual registration fees for gasoline-powered
vehicles, and the implementation of discounted diesel ration
cards for poorer families. Since Monday, anecdotal reports
indicate that long queues at gas stations have returned as
patrons attempt to top-off diesel reservoirs before higher
prices are implemented.
--------------
COMMENT
--------------
4. (C) Historically, the SARG has raised fuel prices on May
1. With the early onset of warmer weather this year, the
SARG may increase diesel prices sooner in order to provide
consumers an adjustment period before the demand for diesel
peaks in the hottest summer months. Power outages have
already been observed in Damascus this week, and there is
some expectation that they could become more frequent during
the summer. When and if the diesel price rise occurs, the
resulting increases in consumer prices will add to the
already high levels of unhappiness in Syria.
CORBIN