Inflated fuel imports support Syria smuggling claims

Gas oil imports exceed two million tons at end-April, MoF attributes rise to energy production

Considerable growth in gas oil imports by the private sector suggests the commodity is being smuggled in to Syria, according to a report published by Reuters. Gas oil imported by private buyers came to 106,000 tons in April and 51,000 tons in May, up from just 33,000 tons and 25,000 tons for the same months last year, the news agency said.

Gas oil, also called fuel oil or diesel, is imported into Lebanon by the Ministry of Energy through both the state power utility and the state owned oil storage facilities in Zahrani and Tripoli. It is also imported by a local cartel of a dozen private petroleum importers.

Average monthly imports of gas oil reach 216,000 tons, out of which 100,000 tons is imported by Electricite du Liban (EDL), 58,000 tons is imported by the oil storage facilties, and another 58,000 tons by private petroleum importers, according to oil expert Rabih Yaghi.

"EDL gas oil purchases are made through annual renewable contracts with Algeria and Kuwait, while the oil storage facilities in Tripoli and Zahrani buy gas oil through regular tenders," Yaghi said. Customs figures show that gas oil imports until end-April have exceeded two million tons, a 100 percent rise from last year.

The official explanation, by the Ministry of Finance, was that the rise was induced by EDL's 'registered fuel imports' which rose to 1.5 million tons from 500,000 tons a year earlier. "Imports by EDL are usually admitted under a 'special permission' and thus are not registered as imports," the MoF said.

Syria has faced a shortage in gas oil lately due to tighter international sanctions. According to Yaghi, the illegal flow of goods has always existed across the porous Syrian/Lebanese border. "Syrian gas oil was often smuggled into Lebanon because it was cheaper."

He said that while Syria's annual demand for gas oil is around five million tons, the country produces around two million tons. Fuel imports to Syria have recently been curbed by tighter economic sanctions.

"We cannot deny that gas oil is being transferred from Lebanon to Syria through illegal routes," Yaghi said.

Reported by Hanadi Chami