Syria raises gasoline price to ease subsidy burden

Damascus, April 16 (IANS) Syria has raised the price of gasoline by 20 percent as part of government-guided austerity measures to cut costly subsidies, the fifth increase in three years.

The Ministry of Trade and Consumer Protection announced Wednesday that the price of one litre of gasoline would be raised from 100 to 120 Syrian pounds ($0.73) per litre, effective immediately, Xinhua reported.

Syrian Oil Minister Suleiman al-Abbas told the local al-Watan newspaper that gasoline is still subsidised by the government and the hike will have no impact on a wide section of citizens.

The subsidy of one litre of gasoline costs the state's treasury 124 pounds, he said, noting that subsidy overburdens the treasury, especially with the continuous change of the exchange rate.

The pound was traded at 46 per dollar ahead of the crisis in 2011 and has now reached 174 pounds in the black market.