Syria’s Fuel Protests Expose the Limits of Its Economic Recovery

“We don’t want new roundabouts or malls. We just want to live.” That was the message from one protester in Aleppo as demonstrations over soaring fuel prices spread across Syria on September 13. 

Syria’s Oil Derivatives Pricing Committee announced a new round of price increases on September 12, raising fuel and gas prices by an average of roughly 22 percent. Individual increases ranged from about 9 percent for domestic and industrial gasoline to 40 percent for diesel. Following the increase in prices, demonstrations and roadblocks spread across at least seven Syrian governorates, including Aleppo, Hama, and Idlib. The number of protesters varied from a few dozen to several hundred in some areas. Many Syrians say their household finances remain under severe strain despite government promises of reconstruction and foreign investment. They are increasingly demanding economic reforms from the state. 

Global Stresses Factor Into Syria’s Energy Crisis

The current government inherited an energy system severely degraded by years of civil war, leaving refineries and production facilities impacted. According to the World Bank, roughly 40 percent of Syria’s energy infrastructure was still damaged in 2025, forcing the government to rely heavily on foreign supplies. Domestic oil production has increased significantly since Damascus regained control of oil fields in eastern Syria, reaching roughly 82,000 barrels per day in the first half of 2026, up from about 35,000 barrels per day in 2025. Yet production remains well below Syria’s estimated domestic requirement of 120,000-150,000 barrels per day.

The Syrian government said its decision to “temporarily” increase fuel prices reflected rising global costs for securing gasoline, diesel, and other petroleum products. It also cited disruptions to supply and shipping routes through the Strait of Hormuz, Bab al-Mandab, the Red Sea, and the Gulf of Aden as factors that have placed significant additional strain on Syria’s energy market.

Foreign Investment Has Yet To Translate Into Economic Gains 

Foreign investment and Syria’s integration into the international economy have begun to yield positive economic growth but have not yet improved the situation for the average household. The International Monetary Fund (IMF) forecasts a double-digit growth rate in Syria’s economy in 2026 but also notes that growth remains uneven and poverty is still widespread. Inflation has grown exponentially. At the same time, the IMF did not report economic data and said that the gaps “hamper a more detailed assessment” of economic development. 

There have been a number of agreements between Damascus and foreign entities, including governments and corporations, aimed at financing the country’s reconstruction. Some have already reached the implementation phase, including a $4 billion project to redevelop Damascus International Airport and a Qatari-led $7 billion electricity project. But these remain long-term infrastructure investments that will take years to complete and offer little directly to Syrian families. This disconnect has deepened grievances against the state, with some analysts criticizing the government’s economic model for prioritizing attracting foreign capital over immediate improvements in living standards and investment in sectors capable of generating jobs. 

Washington Should Help Syria Turn Investment Into Economic Relief

The United States has a role to play in addressing these economic pressures. Washington has already supported efforts to expand regional trade and energy routes that could help Syria reduce its vulnerability to disruptions in the Strait of Hormuz and other regional chokepoints, particularly through Iraq. But the United States should also focus on Syria’s domestic economic transition. Washington can encourage Damascus to deepen its cooperation with the World Bank and the International Monetary Fund, moving beyond smaller-scale assistance toward larger development projects that can create jobs and deliver more visible economic benefits to Syrian households. Washington should also press Damascus to improve economic transparency by publishing clearer data on public revenues, subsidies, foreign investment agreements, and the implementation of major reconstruction projects.

Ahmad Sharawi is a senior research analyst at the Foundation for Defense of Democracies (FDD). For more analysis from Ahmad and FDD, please subscribe HERE. Follow FDD on X @FDD. Follow Ahmad on X @AhmadA_Sharawi. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.