Iraqi lawmaker Mohammed Jassim al-Khafaji stated that reports from the Federal Board of Supreme Audit revealed that massive corruption and waste occurred within the oil products distribution sector alone, where millions of liters of fuel were distributed daily without their revenues being accounted for.

The Federal Board of Supreme Audit's 2025 annual report was officially presented and debated in the Iraqi Parliament on Tuesday, in the presence of the board's head, Ammar Subhi, and senior oversight staff.

MP Exposes 'Evaporation' Scam Masking Massive Fuel Gaps 

Elaborating on the mechanism behind the fuel discrepancies, al-Khafaji explained that when a private station received a 30,000-liter gasoline delivery, it was only invoiced for 28,000 liters under the pretext of natural evaporation. 

He noted that, in reality, no such deficit occurred, allowing the station to sell the full 30,000 liters while only being billed for 28,000.

According to the lawmaker, the board's reports revealed that 56 billion liters of fuel have gone missing, prompting the establishment of an investigative committee to question the Director General of the Oil Products Distribution Company, an enterprise operating directly under the Ministry of Oil.

Al-Khafaji further criticized the Oil Ministry's affiliates, stating that the Oil Products Distribution Company has demonstrated severe negligence in managing fuel distribution nationwide.

Fuel Deficit Multipliers Create Massive Shortages

Detailing the numerical discrepancies, al-Khafaji highlighted that multiplying a single-liter deficit across millions of liters yields astronomical figures, given Iraq's daily consumption of 10 million liters of gasoline and 8 million liters of diesel.

MP Confirms Investigative Committee Formed to Probe 

The lawmaker clarified that the Federal Board of Supreme Audit explicitly flagged this in its reports, identifying that billion liters of fuel are missing.

He described this as a malicious act, confirming that an investigative committee has been formed to cross-examine the Director General of the Oil Products Distribution Company.

30 Trillion IQD Lost and 500,000 State Properties Encroached

During Tuesday's session, the Council of Representatives exposed systemic waste across the oil and energy sectors alongside 30 trillion IQD in uncollected public funds. 

The session highlighted severe delays in state accounts and the illegal encroachment upon 500,000 state properties, prompting files to be transferred to the Ministry of Justice for action. 

Meanwhile, lawmakers scrutinized the financial reports, questioning the economic feasibility of major projects like the Baiji refinery and demanding comprehensive audits across oil marketing contracts, residential developments, and border crossings to guarantee transparency in state revenue collection.