Iraq Parliament and SOMO to Discuss Kurdistan Fuel Crisis
At a Glance
- Iraqi Parliament and SOMO to meet
- 50,000 barrels under review
- Subsidized gasoline proposal advances
- Kurdish blocs largely support plan
Iraqi lawmakers and oil officials are preparing to discuss a new mechanism for addressing high gasoline prices in the Kurdistan Region, with federally subsidized fuel at the center of the proposal.
Key Statements and Focus Area
- Kawa Abdulqadir: The parliamentary Oil, Gas and Natural Resources Committee will meet with Ministry of Oil and SOMO officials.
- Parliamentary proposal: Directly supply federally subsidized gasoline to the Kurdistan Region.
- 50,000 barrels: The mechanism for handling the Region’s daily crude oil allocation will be reviewed.
The Iraqi Parliament’s Oil, Gas and Natural Resources Committee is scheduled to meet tomorrow with officials from the Iraqi Ministry of Oil and SOMO over the Kurdistan Region’s fuel crisis.
Kawa Abdulqadir, an Iraqi parliamentarian representing the New Generation Movement, said the meeting will examine how the 50,000 barrels of crude oil allocated to the Kurdistan Region each day are currently handled.
The discussions are expected to focus on whether a different mechanism could be used to turn the allocated crude oil into a source of cheaper gasoline for consumers in the Region.
A formal proposal has been submitted to the parliamentary presidency calling for the federal government to directly provide subsidized gasoline to the Kurdistan Region’s governorates.
Under the proposal, the Region’s allocated crude oil would be incorporated into a mechanism that allows federally subsidized gasoline to reach local markets.
The stated objective is to reduce gasoline prices and bring fuel costs in the Kurdistan Region closer to those in other parts of Iraq.
According to Abdulqadir, most Kurdish parliamentary factions support the proposal, with the exception of the Kurdistan Democratic Party bloc.
Several Sunni and Shiite lawmakers also support the plan for Baghdad to directly provide subsidized gasoline to the Kurdistan Region.
The proposal comes as gasoline prices in the Region remain significantly higher than federally subsidized prices elsewhere in Iraq.
The meeting with Ministry of Oil and SOMO officials is expected to examine whether Baghdad should retain the 50,000 barrels of crude oil allocated to the Kurdistan Region or market the oil through SOMO.
Under the proposed arrangement, the oil would be exchanged for federally subsidized gasoline distributed across the Region’s governorates.
Supporters say the mechanism could reduce the financial and transportation costs currently borne by citizens while bringing local gasoline prices closer to those elsewhere in Iraq.
FYI
The Kurdistan Region’s fuel shortages have been compounded by regional conflict, disrupted imports of refinery chemicals, and the closure of non-compliant makeshift refineries that had supplied cheaper, low-grade fuel. While central and southern Iraq receive heavily subsidized gasoline at around 450 IQD per liter, the Region largely relies on private-market pricing.
Iraq is also facing wider energy challenges linked to regional tensions and disruptions around the Strait of Hormuz. Federal authorities are pursuing alternative export routes, including a planned pipeline connection between Basra and Faysh Khabur to move southern crude toward Turkey’s Ceyhan port.
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