Ahmed Mufti Outlines Gasoline Subsidies and Industrial Reforms

At a Glance:

Half of Slemani's gasoline supply is currently subsidized at 750 dinars per liter, with guaranteed quality controls.
Baghdad criticized for unequal and unfair kerosene distribution across Kurdistan Regional Government (KRG) governorates.
Factories in Bazian given an 18-month deadline to cease burning heavy fuel oil and convert to natural gas.

Ahmed Mufti, Deputy Minister of Natural Resources, addressed the Kurdistan Region’s fuel crisis and broader energy landscape during a live appearance on Channel8.

Speaking on pressing supply issues, Mufti reassured citizens that subsidized gasoline programs will continue while criticizing the federal government in Baghdad for unfairness in distributing central kerosene allocations to the governorates.

Key Statements and Focus Area:

Federal Disparity: "[Breaking] Iraq is not fair in distributing kerosene among the governorates," declared Ahmed Mufti regarding central fuel allocations.
Subsidized Gasoline: "The 750-dinar gasoline will continue... If necessary, we will increase the amount of subsidized gasoline in Slemani," stated Mufti, adding that "16 stations inside Sulaymaniyah continuously provide 750-dinar gasoline without coupons."
Environmental Transition: "Within a year and a half, all factories in Bazian must burn gas instead of heavy fuel oil," noted Mufti regarding regional industrial mandates.

Gasoline Distribution and Regional Demand

Addressing ongoing fuel market concerns, Deputy Minister Ahmed Mufti confirmed that 50% of the gasoline distributed across the Slemani region is currently subsidized by the government. The 750-dinar-per-liter supply is actively disbursed via 16 dedicated stations operating without coupon requirements. Mufti guaranteed the quality of the 750-dinar fuel and affirmed that the KRG is prepared to expand subsidized supply volumes if demand surges, noting that the Kurdistan Region requires 6 to 6.5 million liters of gasoline daily despite having no state-owned refinery or national oil company.

Federal Kerosene Allocations and Price Stabilization

Mufti highlighted ongoing initiatives within the Ministry of Natural Resources aimed at lowering commercial kerosene prices for local residents ahead of changing demand cycles. However, he sharply criticized the central government in Baghdad over distribution practices, stating that federal kerosene allocations are unfairly apportioned across governorates, putting added pressure on northern consumers.

Power Generation and Gas Supply Logistics

Clarifying the state’s energy infrastructure, Mufti noted that while the KRG does not directly own power generation facilities, the government retains full authority to mandate and guarantee adequate natural gas supplies to all active power plants. Furthermore, logistical hurdles that previously delayed the distribution of household gas from the Khor Mor field to surrounding governorates have been fully resolved.

Industrial Decarbonization and Gas Contracts

Mufti raised strong environmental concerns regarding the Bazian industrial region, where approximately 3,000 tons of heavy fuel oil (black oil) are burned daily, severely polluting the surrounding area. To address this, the government has instituted an 18-month deadline requiring all local factories to convert from heavy fuel to natural gas. Supporting this transition, Dana Gas has signed eight supply contracts in the Chamchamal field, allocating 100 million cubic feet of natural gas directly to industrial plants. On broader upstream operations, Mufti noted that decisions regarding increases in overall oil production rest with the operating foreign companies.

FYI

The Kurdistan Region’s downstream energy sector has operated under severe structural pressures following persistent diplomatic and political disputes over oil exports and revenue sharing between Erbil and Baghdad. Lacking state-owned refining capacity, the KRG remains heavily reliant on private refining contracts, local field developments like Khor Mor, and federal fuel allocations to meet daily domestic consumption. As industrial areas like Bazian face heightened environmental scrutiny, the KRG’s shift toward utilizing domestic natural gas aims to stabilize local energy grids, reduce heavy industrial emissions, and cushion local consumers against broader supply shocks.