At a Glance

• Crude oil allocation under review
• Two proposals submitted to Baghdad
• Super gasoline reaches 2,700 IQD
• 166 MPs petition Prime Minister

The Kurdistan Region’s fuel crisis is increasingly linked to decisions by the federal government, as lawmakers put forward proposals to ease shortages and high gasoline prices.

Key Statements and Focus Area

• 166 Iraqi MPs: Have petitioned Prime Minister Ali Faleh al-Zaidi to address the fuel crisis.
• PUK and Halwest Movement: If the allocation cannot be increased, transfer the Region’s oil to SOMO in exchange for subsidized gasoline.

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The Kurdistan Region is seeking an increase in the amount of crude oil allocated to its local refineries. The current allocation stands at 50,000 barrels per day.

Supporters of the proposal argue that increasing the crude oil supply would allow local refineries to produce more gasoline and help address the current fuel situation.

The federal government, meanwhile, cannot simply provide ready-made gasoline to the Region, as it also relies on imports to meet domestic demand. For this reason, the first proposal focuses on increasing crude oil supplies for refining rather than directly sending gasoline.

A total of 166 Iraqi parliamentarians have signed a petition calling on Prime Minister Ali Faleh al-Zaidi to approve an increase in the Kurdistan Region’s crude oil allocation for refining purposes.

Information obtained by Channel8 indicates that the request comes after five decisions by the Kurdistan Regional Government failed to control fuel prices.

The latest proposals have shifted attention toward Baghdad and the role the federal government could play in resolving the crisis.

A second approach has been put forward by the Patriotic Union of Kurdistan (PUK) bloc and the Halwest Movement.

Under this proposal, if Baghdad rejects an increase in the Region’s crude oil allocation, the Kurdistan Region would hand over all of its oil to SOMO.

In return, Baghdad would provide the Kurdistan Region with subsidized gasoline under the same arrangement applied to other Iraqi governorates.

The proposal also calls for the federal government to supervise the entire fuel process, with the stated aim of reducing the burden on citizens.

Fuel prices in the Kurdistan Region have continued to rise.

• Normal gasoline: 1,200–1,750 IQD per liter
• Muhasan (Premium): 2,200 IQD per liter
• Super gasoline: 2,300–2,700 IQD per liter

The price of Super gasoline has reached 2,700 IQD per liter, marking the highest level recorded in the Kurdistan Region over the past two months.

FYI

The Kurdistan Region’s fuel crisis has been affected by wide regional developments and disruptions to local production and supply chains in recent months.

Repeated military escalation and drone strikes by Iran-backed groups have targeted critical energy infrastructure, including major facilities such as the Khor Mor gas field. The attacks have prompted international companies to suspend local oil and gas production as a precaution.

Local refineries rely heavily on chemical agents imported from Iran to process crude oil into higher-grade gasoline. Cross-border trade disruptions linked to regional tensions have restricted access to these essential materials, further affecting refining capacity.

Iraq’s federal fuel system maintains heavily subsidized gasoline prices in central and southern governorates, where citizens can purchase fuel for around 450 IQD per liter. The Kurdistan Region, by contrast, largely relies on a private-market system, exposing consumers to significantly higher commercial fuel prices.

The Kurdistan Regional Government has recently shut down numerous illicit and makeshift refineries as part of efforts to strengthen environmental standards and regulate the oil sector. These facilities, however, had supplied significant quantities of low-grade gasoline to the local market at lower prices. Their closure has consequently reduced the overall daily supply of locally produced fuel.

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