Lebanon-Syria: Smuggling Thrives on Fuel

With limited resources in both equipment and personnel, Lebanese Customs and General Security forces face significant challenges in controlling the porous borders between Lebanon and Syria. Some sources estimate that nearly 150 illegal crossing points exist, with the Masnaa border post being the only officially operational one.

The illegal trafficking of goods between Lebanon and Syria has been a longstanding issue. Despite the collapse of Bashar al-Assad’s regime, little progress has been made, even with the United Kingdom’s assistance to Lebanon in securing its borders, notably through the construction of surveillance towers along the northern and eastern borders.

In Syria, the supply of essential goods – such as food, fuel and cement – remains severely disrupted. This scarcity has driven a significant demand for smuggled products, further exacerbated by continued United States sanctions on the country.

Strong Syrian Demand for Lebanese Petroleum Products

Syria’s demand for petroleum derivatives, especially from Lebanon, is rising sharply, and the country faces the prospect of running out of supplies in the near future. Currently, the gasoline available at Syrian gas stations is sourced from storage facilities linked to the Banias and Homs refineries – stocks that date back to before the fall of the Assad regime, according to a local source speaking to This is Beirut. This source also highlights the low quality of this fuel, which has a low octane rating, making it detrimental to vehicle engines.

In contrast, gasoline from Lebanon offers an octane rating of 85, making it a preferred alternative for Syrians, due to its superior quality and better logistical accessibility.

Since the fall of the Assad regime, Russia and Iran have almost entirely halted their fuel supplies to Syria. Faced with this shortage, Damascus has been compelled to rely on “illegal channels” to import fuel from Lebanon, Jordan and Turkey. The US Caesar Act, which imposes ongoing sanctions on Syria, prohibits any official trade between Damascus and third-party countries.

In this context, it is also important to highlight the presence of the Kurdish militia, Qasad (Syrian Democratic Forces, SDF), which controls several key oil fields in Syria, particularly in Deir Ezzor and al-Hasakah. This control complicates the transportation and distribution of fuel to other Syrian provinces.

Small and Large Smugglers

In the current context in Syria, it is not surprising to see individuals stationed along roads in Syrian provinces, selling ten-liter cans of gasoline or diesel. These small-scale smugglers make modest profits, while larger, more influential traders manage operations on a far bigger scale, secretly transporting entire tankers of fuel through illegal crossing points.

According to Maroun Chammas, the President of the Association of Oil Importing Companies in Lebanon (APIC), nearly 4 million liters of gasoline and diesel are smuggled from Lebanon to Syria every day. This illegal trade benefits not only the smugglers but also, indirectly, the Lebanese state, which collects a VAT of around $1.8 to $1.9 per fuel can sold as well as profits from port fees when goods arrive at Lebanese ports.

No Fuel Crisis in Lebanon

“There will be no fuel crisis or shortage, as we saw in previous years,” asserts a source within APIC, speaking on condition of anonymity. This source claims that the 2020 and 2021 fuel crises were artificially created, primarily due to the government’s fuel subsidy policy. “This system encouraged both consumers and traders to speculate on prices and stockpile fuel for profit,” explains the source.

Today, fuel supply is no longer a daily concern for the Lebanese population. The private sector has diversified its import sources, ensuring a more reliable supply through agreements reached with multiple suppliers and by opening the market to greater competition.

Another key factor driving this improvement has been the stabilization of the exchange rate. As the volatility of the Lebanese pound (LBP) has decreased, purchasing fuel in dollars has become more predictable, which has helped curb speculation and complex economic arbitrage.

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