Fuel Coupons Hit Black Market
Syria Media Report, 30-Jul-08
Fuel Coupons Hit Black Market
Syria Media Report, 30-Jul-08
Ration coupons for subsidised heating fuel are now being traded on the black market, the Syrian weekly Economist reported on July 28.
To cushion the blow of its withdrawal of general fuel subsidies, the government began issuing kerosene coupons in April. Every family is entitled to use the coupons to buy 1,000 litres of heating fuel a year at the subsidised price of nine lira, currently about 18 US cents, per litre. For purchases over this amount, they can pay the open market rate, which is much higher.
The rise of commercial fuel prices has created an illegal market in the ration coupons. Facing immediate hardship, many families are turning their coupons into cash, and these are then sold on to industry and business.
Nor is there any legislation specifically banning the resale of coupons.
In Latakia and other cities, the magazine reported that traders are knocking on doors and offering to pay slightly over the odds, 10.5 or 11 liras for the coupon equivalent of a litre.
Other people are getting better offers. Petrol stations, where coupons can be legally exchanged for kerosene, are also quietly buying them up for cash. According to one black marketeer, the petrol stations pay 20 to 22 lira for the coupon equivalent of one litre – in other words more than twice their face value.
This mark-up still leaves room for healthy profits when the coupons are sold on. The trader said he was clearing hundreds of dollars at a time.
Another scam involves simple forgery. Again, the petrol stations are alleged to be involved in this.
To deal with the problem of forgery, the government office which distributes the coupons has suggested scrapping the system and simply giving the subsidy in cash.
The Economist magazine called for a review of the entire fuel coupon system.
To cushion the blow of its withdrawal of general fuel subsidies, the government began issuing kerosene coupons in April. Every family is entitled to use the coupons to buy 1,000 litres of heating fuel a year at the subsidised price of nine lira, currently about 18 US cents, per litre. For purchases over this amount, they can pay the open market rate, which is much higher.
The rise of commercial fuel prices has created an illegal market in the ration coupons. Facing immediate hardship, many families are turning their coupons into cash, and these are then sold on to industry and business.
Nor is there any legislation specifically banning the resale of coupons.
In Latakia and other cities, the magazine reported that traders are knocking on doors and offering to pay slightly over the odds, 10.5 or 11 liras for the coupon equivalent of a litre.
Other people are getting better offers. Petrol stations, where coupons can be legally exchanged for kerosene, are also quietly buying them up for cash. According to one black marketeer, the petrol stations pay 20 to 22 lira for the coupon equivalent of one litre – in other words more than twice their face value.
This mark-up still leaves room for healthy profits when the coupons are sold on. The trader said he was clearing hundreds of dollars at a time.
Another scam involves simple forgery. Again, the petrol stations are alleged to be involved in this.
To deal with the problem of forgery, the government office which distributes the coupons has suggested scrapping the system and simply giving the subsidy in cash.
The Economist magazine called for a review of the entire fuel coupon system.
