Iraq arrests +150 fuel smugglers in one month

Shafaq News/ Iraq arrested over 150 suspects for smuggling oil derivatives in January 2025, the Interior Ministry said on Saturday.

Ministry spokesman Brig. Gen. Muqdad Miri announced that in January 2025, the Energy Police Directorate seized 116 illegal fuel tankers, arrested 152 suspects for smuggling oil derivatives, and shut down two unauthorized fuel depots. The operation resulted in the confiscation of 2.66 million liters of illicit petroleum products.

Miri noted, “Fuel smuggling dropped by 98% last month, with no reported attacks or violations on oil pipelines nationwide.”

Oil Smuggling in Iraq

Iraq, the world's fifth-largest oil producer, faces chronic fuel shortages and a thriving black market due to government subsidies, according to experts. Smugglers exploit price gaps, moving millions of liters of oil daily through the Kurdistan Region, where fuel costs nearly three times as much as in Baghdad.

For instance, while subsidized fuel in Baghdad costs around 500 dinars (€0.35) per liter, prices in the Kurdistan Region soar to 1,300 dinars (€0.92) per liter. This discrepancy has reportedly created a lucrative incentive for smugglers, who funnel an estimated 7 million liters of oil daily through Iraq’s semi-autonomous Kurdish region—where it is either consumed locally or trafficked to neighboring countries.

This illicit trade drains state revenue worsens political tensions between Baghdad and the Kurdish government. In response, the government has intensified crackdowns, deploying security forces to curb smuggling and stabilize fuel supply.

Despite the government's efforts to combat the phenomenon, experts point to persistent loopholes in oversight, particularly in border areas and southern ports, where sophisticated techniques are used to conceal smuggled oil quantities.