Lebanon Loses $400 Million Yearly from Fuel Smuggling to Syria

Lebanese bread seen at a bakery in Lebanon. NNA
Lebanese bread seen at a bakery in Lebanon. NNA
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Lebanon Loses $400 Million Yearly from Fuel Smuggling to Syria

Lebanese bread seen at a bakery in Lebanon. NNA
Lebanese bread seen at a bakery in Lebanon. NNA

Lebanon is losing millions of dollars yearly due to the smuggling of goods to Syria through illegal border crossings.

A report broadcast by a local television channel revealed this week that the amount of smuggled fuel to Syria is estimated at $400 million per year.

It said traffickers have recently added wheat on their list of smuggled goods, depleting the capacity of the state to provide basic commodities to the local market.

The Lebanese Central Bank (BDL) subsidizes these two commodities.

BDL supplies dollars for the import of wheat, medicine, gasoline, diesel, and butane at the pegged exchange rate of LL1507.5, while the black market rate is above LL4,000.

The television said because wheat in Lebanon is subsidized, the cost of one metric ton is $150 while in Syria it is $320.

The wheat is milled in Lebanon and sold as flour at low prices in order for the bakeries to maintain the fixed price of the bread pack at LL1,500.

“This report shows again the very negative impact of illegal smuggling on the state’s finances,” said Lebanese Forces leader Samir Geagea.

In January, Finance Minister Ghazi Wazni revealed that $4 billion to $5 billion would be requested from international donor countries to finance purchases of wheat, fuel and medicines.

Democratic Gathering MP Hadi Abou Al-Hosn said the Progressive Socialist Party would go to the judiciary and question the government on this issue.

“While the Central Bank has put limits on the withdrawal of dollars from bank deposits to buy basic needs, such as wheat, fuel and medicine, depriving people of their money, we see mobs draining the economy by smuggling flour and diesel across the illegal border crossings in both directions. The situation is no longer bearable," he said.

Lebanon’s economic crisis continues to worsen, while the value of the Lebanese lira dipping and the prices of goods tremendously increasing.

In October, Lebanese banks began reducing dollar withdrawals before they stopped them entirely last month.

Last week, the government formally requested the assistance of the International Monetary Fund (IMF) to save Lebanon from the deep financial crisis.



Syria Reaches Deal to Integrate SDF within State Institutions, Presidency Says

A handout picture released by the official Syrian Arab News Agency (SANA) shows Syria's interim President Ahmed al-Sharaa (R) shaking the hand of Syrian Democratic Forces (SDF) commander-in-chief Mazloum Abdi after the signing of an agreement, to integrate the SDF into the state institutions, in the Syrian capital Damascus on March 10, 2025. (SANA / AFP)
A handout picture released by the official Syrian Arab News Agency (SANA) shows Syria's interim President Ahmed al-Sharaa (R) shaking the hand of Syrian Democratic Forces (SDF) commander-in-chief Mazloum Abdi after the signing of an agreement, to integrate the SDF into the state institutions, in the Syrian capital Damascus on March 10, 2025. (SANA / AFP)
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Syria Reaches Deal to Integrate SDF within State Institutions, Presidency Says

A handout picture released by the official Syrian Arab News Agency (SANA) shows Syria's interim President Ahmed al-Sharaa (R) shaking the hand of Syrian Democratic Forces (SDF) commander-in-chief Mazloum Abdi after the signing of an agreement, to integrate the SDF into the state institutions, in the Syrian capital Damascus on March 10, 2025. (SANA / AFP)
A handout picture released by the official Syrian Arab News Agency (SANA) shows Syria's interim President Ahmed al-Sharaa (R) shaking the hand of Syrian Democratic Forces (SDF) commander-in-chief Mazloum Abdi after the signing of an agreement, to integrate the SDF into the state institutions, in the Syrian capital Damascus on March 10, 2025. (SANA / AFP)

The Kurdish-led and US-backed Syrian Democratic Forces (SDF), which controls much of Syria's oil-rich northeast, has signed a deal agreeing to integrate into Syria's new state institutions, the Syrian presidency said on Monday.

The deal, which included a complete cessation of hostilities, was signed by interim Syrian President Ahmed al-Sharaa and the SDF's commander, Mazloum Abdi.

Under the deal, whose text was posted online by the presidency, all civilian and military institutions in northeast Syria will be integrated within the state, which will thus take over control of borders, airports and oil and gas fields.

The SDF agrees to support the government in combating remnants of deposed president Bashar al-Assad's regime, and any threats to Syria's security and unity.

Since Assad was overthrown by Sharaa's Islamist forces in December, groups backed by Türkiye, one of Sharaa's main supporters, have clashed with the SDF, the main ally in a US coalition against ISIS militants in Syria.

The SDF is spearheaded by the YPG militia, a group that Ankara sees as an extension of Kurdistan Workers Party (PKK) militants who have fought the Turkish state for 40 years.

Türkiye regards the PKK, YPG and SDF as terrorist groups, and Sharaa's new Damascus administration had been pressing the SDF to merge into newly-minted state security forces.

Abdi had previously expressed a willingness for his forces to be part of the new defense ministry, but said they should join as a bloc rather than individuals, an idea that was rejected by the new government.

The US and Türkiye’s Western allies list the PKK as a terrorist group, but not the YPG or the SDF.