At a Glance

• KRG Acting Minister of Natural Resources Kamal Muhammad Salih pushes back on statements by Iraqi Federal Minister of Oil Basim Muhammad.
• Clarifies that the 50,000-barrel daily crude allocation was a temporary, forced constraint rather than a choice.
• Affirms readiness to negotiate full, population-proportional fuel allocations at federal subsidized rates.
• Commends members of the Iraqi Council of Representatives advocating for an increased oil quota for the Kurdistan Region.

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The Kurdistan Regional Government’s (KRG) Ministry of Natural Resources issued an official clarification on Wednesday addressing recent statements by Federal Iraqi Oil Minister Basim Muhammad regarding the ongoing fuel crisis, firmly rejecting assertions that Erbil voluntarily accepted a capped crude oil allocation and demanding a fair, population-proportional share of federally subsidized petroleum products.

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Key Statements and Focus Area

• Rejection of Capped Quota Premises: "Capping the allocation at 50,000 barrels for the Region's domestic use was the result of a temporary agreement and was not based on our preference or will," stated Kamal Muhammad Salih, Acting Minister of Natural Resources.
• Proportional Equity Demand: "By all measures, the Region's share of crude oil for domestic consumption is more than double the current amount," Salih emphasized, calling for a distribution model equal to all other Iraqi provinces.
• Openness to Constitutional Talks: "If the Federal Ministry of Oil is prepared to engage in discussions regarding the provision of all types of fuel at subsidized prices in accordance with the population ratio of the Kurdistan Region, we are ready to negotiate—while upholding the constitutional rights of the Region," the Ministry affirmed.
• Parliamentary Support Acknowledged: "It is fitting to commend the stance of all Members of Parliament in the Iraqi Council of Representatives who have demanded justice and an increase in the Kurdistan Region’s share of crude oil for domestic consumption," the statement concluded.

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Dispute Over Domestic Crude Quotas

The statement follows comments from Federal Oil Minister Basim Muhammad regarding Erbil’s daily 50,000-barrel crude oil allocation designated for local refining. Addressing public allegations that Baghdad had offered to resolve regional fuel deficits provided the KRG handed over its designated crude stock, the Ministry of Natural Resources clarified that the current volume represents a forced, temporary compromise rather than an equitable long-term agreement.

Demand for Equitable Fuel Subsidies

Emphasizing the economic strain on citizens across the Kurdistan Region, Acting Minister Kamal Muhammad Salih reiterated Erbil's stance that petroleum allocations must reflect national population ratios. The KRG expressed immediate readiness to enter structured negotiations with Baghdad to secure access to fully subsidized fuels matching price points and supply guarantees provided to central and southern Iraqi governorates while safeguarding the Region's constitutional prerogatives.

Parliamentary Backing in Baghdad

The Ministry's official position highlighted growing alignment with several lawmakers in the Iraqi Council of Representatives who have publicly called on the federal government to adjust crude distribution formulas. Kurdish and federal parliamentarians have increasingly urged the Ministry of Oil to expand domestic crude deliveries to northern refineries to lower retail fuel prices and eliminate regional market disparities.

FYI

The dispute over the 50,000-barrel crude quota highlights long-standing structural friction between Baghdad and Erbil over national resource management and budget execution. Following the suspension of northern crude exports via the Ceyhan pipeline and fluctuating domestic fuel production, retail gasoline prices in the Kurdistan Region have repeatedly outpaced federally subsidized rates across the rest of Iraq. As lawmakers in Baghdad press the Ministry of Oil to double the region's refining allocation to match its roughly 12.67% population share, both governments face mounting political pressure to finalize a comprehensive framework for equitable energy distribution.

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