THE FUEL SECTOR of NORTHWEST SYRIA Untangling the Web for Humanitarians DECEMBER 2019
THE FUEL SECTOR OF NORTHWEST SYRIA Untangling the web for humanitarians DECEMBER 2019 1 / 22 EXECUTIVE SUMMARY The fuel sector in Syria has changed radically since the outbreak of the Syrian conict in 2011. In the past nine years, the sector has transitioned from a market strictly regulated by the Syrian government, to one completely driven by the forces of demand, supply and the status of supply lines. As the conict erupted the Syrian Petroleum Storage and Distribution Company (SADCOB), the sole distributor of gasoline, diesel and gas in Syria, suspended operations and withdrew from areas beyond the Government of Syria’s control. Domestic oil reserves in the northeast were separated from the distribution network based in Damascus. The nation’s infrastructure and economy, 95% reliant on fossil fuels prior to 2011, was left at the whim of smuggling across lines of control, cross-border trade navigating extensive sanctions, and ongoing changes in suppliers, leading to signicant supply and price uctuations. The fuel sector in northwest Syria epitomised this volatility. Longstanding public dissatisfaction with fuel prices, poor fuel quality, and inconsistent availability provided the Syrian Salvation Government an opportunity to intervene in the lucrative sector. Less than six months after the establishment of the Salvation Government, the Watad petroleum company emerged. Since 2018, Watad fuel company, Hay'at Tahrir al-Sham (HTS), and the Salvation Government 2 / 22 have worked together to gain complete control of the fuel sector in northwest Syria. Not only is Watad the only company permitted to import petroleum into the area from Turkey, it has also worked with HTS to consolidate control of the crossline and smuggled fuel trade, from both Government of Syria and Kurdish self-administration (KSA) areas.
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