Shafaq News – Baghdad
Iraq’s decision to halt petroleum derivative imports will deliver major fiscal and economic gains, according to Mudhhir Mohammed Saleh, financial advisor to Prime Minister Mohammed Shia al-Sudani.
The government stopped importing gasoline, diesel, and kerosene on Tuesday after domestic production surpassed national demand. Al-Sudani had framed the move as part of a broader strategy to cut dependence on imports and boost refined output to 40% of crude exports by 2030, projecting nearly $10 billion in annual savings.
Saleh told Shafaq News the decision advances Iraq’s import-substitution policy, saves over $7 billion annually, and improves the current account balance.
He also noted that the shift boosts the contribution of refined oil to GDP by nearly 3%, a number Saleh expected to grow as new refineries, particularly in the south, begin operating. “It is a clear sign of the success of the government’s current energy policy.”