Baghdad ties fuel distribution to KRG oil transfer

Shafaq News- Al-Sulaymaniyah

Baghdad is prepared to extend its fuel distribution system to Iraqi Kurdistan if the Kurdistan Regional Government (KRG) submits a formal request and transfers 50,000 barrels of crude oil allocated for local consumption, Ali Hama Saleh, secretary of the Kurdistan Al-Mawqif (Position) Movement, said on Sunday.

Speaking at a press conference, Hama Saleh noted the movement had discussed the crisis with the federal Finance and Oil Ministries, which also offered to compensate refineries in Iraqi Kurdistan for processing crude. The shortages, he argued, persist because of “the interests and profits of companies affiliated with political parties.”

Acting Minister of Natural Resources Kamal Mohammed had estimated daily demand at 126,700-140,000 barrels, compared with the roughly 50,000 barrels Baghdad currently supplies, confirming that the KRG will again request a larger allocation for local consumption.

Fuel shortages over the past month have disrupted supplies across Iraqi Kurdistan despite the KRG’s price controls. Subsidized regular gasoline sells for 750 Iraqi dinars ($0.57) per liter, while commercial gasoline is capped at 850 dinars ($0.65), although many filling stations continue to receive limited deliveries. Before the July price cap, commercial gasoline sold for more than 1,300 dinars ($0.99) per liter in parts of Iraqi Kurdistan.