Shafaq News- Baghdad/ Al-Sulaymaniyah

An Iraqi parliamentary committee on Thursday proposed bringing fuel supplies to the Kurdistan Region under the same federal distribution and pricing system used elsewhere in Iraq, as shortages continue to drive long queues at filling stations across the country.

The ad hoc committee, formed to review the 50,000 barrels of crude oil supplied daily to the Region, recommended that the federal Oil Products Distribution Company supply Kurdistan’s provinces with petroleum products. Each province’s allocation would be calculated under the same formula used elsewhere in Iraq, with distribution coordinated with the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources.

If supplies become insufficient, the committee said available quantities should be divided equally among all Iraqi provinces. Under that scenario, the Region’s separate 50,000-barrel daily crude allocation would be cancelled and the oil exported through the State Oil Marketing Organization (SOMO).

The Ministry of Natural Resources would also be required to sell petroleum products in the Region at prices set by the federal Oil Ministry.

If Baghdad approves the KRG’s request to raise the crude allocation above 50,000 barrels per day, the committee recommended that population size and crisis conditions be taken into account. The final volume would be determined by a technical committee representing refinery companies and the Oil Products Distribution Company.

The recommendations also call for locally produced crude supplied to the Region to be sold at the same price applied to refineries elsewhere in Iraq, while fuel oil, or black oil, would be supplied under the same mechanism used in other provinces.

Consumer prices in the Kurdistan Region would likewise be aligned with those applied elsewhere in Iraq. Refining costs between federal Oil Ministry refineries and Kurdistan Region refineries would be reconciled at the end of each year, with the federal ministry settling the resulting costs.

Wider fuel pressure

The proposals come amid a broader fuel crisis affecting Baghdad, several Iraqi provinces and the Kurdistan Region.

On Wednesday, parliament’s Oil and Gas Committee member Rabee Al-Mousawi said resolving the shortage required higher domestic production of petroleum products, tighter controls on smuggling, refinery upgrades and lower fuel consumption.

Al-Mousawi told Shafaq News that Iraq’s daily oil exports had risen to between two million and three million barrels during the period and were continuing to increase.

He said the government and Oil Ministry should work together to expand domestic fuel production and curb smuggling, particularly toward northern provinces.

He also called for hydrotreating and isomerization units to be added to refineries to increase petroleum-product output and improve efficiency.

Al-Mousawi said the response should also focus on demand, including greater investment in public transport, particularly trains and buses, and encouraging imports of hybrid vehicles from reputable manufacturers.

His comments came as Iraq’s oil exports faced disruption from regional security developments and restrictions on shipping through the Strait of Hormuz, which is used by most crude exports from the country’s southern fields.

Parliament held a session on Monday attended by the oil minister and senior ministry officials to discuss fuel shortages and rising petroleum-product prices. Lawmakers voted on recommendations aimed at addressing the crisis and reconsidering recent price increases.

Hours in line for gasoline

In Al-Sulaymaniyah, the shortage has translated into hours-long waits for subsidized gasoline.

Female drivers told Shafaq News correspondent on Thursday that they wanted more filling stations allocated to women and called on the KRG to improve supplies.

Daik station, which serves female drivers, sells government-subsidized gasoline at 750 dinars ($0.57) per liter. It receives one tanker per day, with each driver allowed 40 liters. Distribution begins at 6:00 a.m. and continues until the daily supply runs out.

Nesreen Ali said it was her first time using the station but that the gasoline shortage had made lengthy waits increasingly unavoidable.

She said she had left home early in the morning and was still waiting for her turn, calling for more stations to serve the growing number of female drivers.

“Citizens should be able to receive services without this suffering, but the reality is different,” Ali said, adding that low-income residents were most likely to endure the queues because they depended on government-priced fuel.

Mariam Mohammed, another driver, said obtaining gasoline had become an additional burden for women balancing work and household responsibilities.

She said the KRG should provide better services and take measures to reduce waiting times.

Baghdad-Erbil supply gap

The KRG set the price of regular government-subsidized gasoline at 750 dinars per liter in July 2026, while regular commercial gasoline was priced at 850 dinars ($0.65).

The federal government currently supplies the Kurdistan Region with 50,000 barrels of crude oil per day for domestic use.

Kurdistan officials say that falls well short of actual demand, which they estimate at about 126,700 barrels per day.

Earlier, the KRG requested that the allocation be increased to 140,000 barrels per day, arguing that additional crude would allow local refineries to raise production and provide gasoline at lower prices.