Salary bumps fail to quell Syria protests over fuel price hikes

The salary bumps are being viewed as a calculated move to mask the fuel price hikes igniting public outrage against the regime

Salary bumps fail to quell Syria protests over fuel price hikes

In a significant move last week, Syrian President Bashar al-Assad announced a full-scale salary increase for state employees, retirees, and military personnel.

This decision emerged against the backdrop of the Syrian pound's plunge to a historic nadir, hitting an alarming 15,500 against the US dollar. This dire economic situation has placed immense pressure on families grappling with the challenge of affording essential basics, including food, fuel, medicine and housing.

However, the long-awaited salary hike did not generate the expected celebratory response. This lack of enthusiasm should not come as a surprise, considering that the salary increase coincided with a parallel government decision to sharply raise fuel prices.

Diesel fuel costs — pivotal for transportation and bakery operations — skyrocketed by a staggering 180%. Concurrently, the price of regular-octane gasoline witnessed an alarming surge of around 165%.

Calculated move

This sudden spike in fuel costs set off a chain reaction of chaos on the streets within the market. Consequently, instead of sparking jubilation, the recent salary increase is now being perceived as a calculated move by the government to conceal the forthcoming additional hardships its policies will inevitably bring. This perception has sparked heightened public outrage and spurred demonstrations in specific regime-held areas.

Read more: Is an Alawite protest movement emerging in Syria's coastal areas?

This sudden spike in fuel costs set off a chain reaction of chaos on the streets within the market. Consequently, instead of sparking jubilation, the recent salary increase is now being perceived as a calculated move by the government to conceal the forthcoming additional hardships.

Prior to the recent decision, the average monthly salary of civil servants hovered around $13. While that amount in Syrian pounds will be doubled, its actual value against the dollar remains uncertain. The Syrian pound has been on a downward spiral since the beginning of May, losing more than 80% of its value, and showing no signs of stabilisation.

Just last week, the Syrian pound hit an all-time low against the dollar on the black market, reaching 15,500. For regular Syrians who are already grappling with stretched finances, putting food on the table has become an increasingly arduous task. The United Nations estimates that the cost of a minimum monthly food basket is 1.35 million Syrian pounds (approximately $93).

Meanwhile, the hike in fuel prices was the result of the regime's decision to completely remove subsidies on petrol and partially lift subsidies on fuel oil. As a result, the price of petrol surged from 3,000 to 8,000 Syrian pounds, while fuel oil prices jumped from 700 to 2,000 Syrian pounds.

In theory, these two decisions could have been implemented separately, allowing civil servants to benefit from the salary boost before experiencing the exacerbation caused by the removal of fuel subsidies.

However, officials stated that the government had to time these moves together in order to free enough funds to cover the salary increase. Additionally, the regime chose to synchronise them, leveraging the salary increase to mitigate the blow of the fuel price hike.

Strategy backfires

However, the strategy appeared to have backfired. Civil servants swiftly grasped that the salary increase would not suffice to offset the amplified costs brought about by the surge in fuel prices and its cascading repercussions.

The regime leveraged the salary increase to mitigate the blow of the fuel price hike. However, the strategy appeared to have backfired. Civil servants swiftly grasped that the salary increase would not suffice to offset the amplified costs brought about by the surge in fuel prices and its cascading repercussions.

Additionally, the immediate impact of the fuel policy shift contrasted sharply with the delayed benefits of the salary raise, which will not be tangible until September. Adding to the discontent, the government offered no assistance to non-civil servant citizens who will not enjoy the salary hike but are still compelled to endure the brunt of the elevated fuel costs.

This abrupt escalation in fuel prices triggered chaos on the streets, with taxi and bus drivers refusing to operate, leading to disruptions in public transportation across various regime-controlled regions. Furthermore, the price surge transmitted shockwaves to food expenses, leading to a staggering overnight surge ranging from 30% to 100%.

Protests erupt across southern Syria

The mounting frustration with this situation ignited protests across southern Syria. In the Suwayda governorate, a general strike was declared, and hundreds of protesters voiced their dissent against the regime.

In neighbouring Dara'a governorate, several villages joined the demonstrations. Even in Jaramana, situated in the Damascus countryside, protests found resonance. These sentiments have also sparked covert calls from individuals in other government-controlled regions, including coastal areas, to initiate a general strike.

Al-Assad's recent interview with Sky News Arabia made it clear that restoring diplomatic ties with Arab countries is not the magic solution that will immediately fix the country's economy. As a result, the regime is expected to boost its reliance on its notorious security apparatus to quell dissent using forceful methods.

Yet, even if such measures achieve short-term compliance, how long can they stifle the voices of hundreds of thousands of individuals grappling with securing their basic necessities amidst soaring inflation and dwindling incomes?

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