Parliament Demands Erbil-Baghdad Proposals to Resolve Fuel Crisis
At a Glance
- Parliament ordered written fuel proposals from Erbil and Baghdad.
- A final legislative report will follow Baghdad's imminent feedback.
- KRG offers 50,000 daily barrels for 450-dinar subsidized gasoline.
- Baghdad already vetoed a 15,000-barrel refining request.
The Chairman of the Iraqi Parliament's Oil, Gas, and Natural Resources Committee announced that they have formally requested the federal Ministry of Oil and the KRG Ministry of Natural Resources to submit written proposals aimed at resolving the high cost of fuel in the Kurdistan Region.
Key Statements and Focus Area
- Harem Kamal Agha told Channel8 that after their committee met with both the Ministry of Oil and the Ministry of Natural Resources on August 26 and 27, they requested both sides to submit their proposals and demands to the committee in writing.
- He noted that upon receiving the federal ministry's feedback, the committee will present a comprehensive report to the Presidency of the Parliament.
Speaking to Channel8, Chairman Agha clarified that the Ministry of Natural Resources has submitted its proposals in an official letter to provide 450-dinar gasoline and other fuels.
He highlighted that if the central government bears the extraction and transportation costs of the 50,000 barrels, they can provide gasoline at 450 dinars per liter.
In an official letter detailing its proposals, the KRG requested 450-dinar gasoline and other fuels in quantities and prices identical to other Iraqi provinces.
In the document, the ministry requested that 14% of the supplied crude oil—amounting to 140,000 barrels per day—or 14% of the gasoline and other fuels allocated for Iraq be distributed to the Kurdistan Region.
In return, Erbil has no objection to handing over 50,000 barrels per day to the Iraqi Ministry of Oil.
Furthermore, the ministry stated that if the federal government covers the extraction and transportation costs of those 50,000 barrels, they can successfully provide gasoline at 450 dinars per liter.
FYI
The fuel crisis in the Kurdistan Region has triggered intense recent negotiations between Erbil and Baghdad. While other Iraqi provinces access heavily subsidized fuel, drivers in the Kurdistan Region face severe supply gaps, pushing commercial regular gasoline prices as high as over 2,000 IQD per liter.
The recent KRG-Baghdad talks center on Erbil’s proposal to trade 50,000 barrels of crude oil per day in exchange for a 14% national fuel share to bring local pump prices down to the federal 450-dinar rate.
Furthermore, the Ministry of Natural Resources forwarded a copy of the document to the committee in which it requested the Minister of Oil to supply their petroleum products from the refining of 15,000 barrels of crude oil, similar to other Iraqi provinces based on the Iraqi Council of Ministers' decision, but the Minister of Oil rejected it.
In a separate document submitted on July 20 to the Oil Products Distribution Company, the Kurdistan Region's daily and annual fuel requirements were outlined as follows:
Daily Power Station Requirements:
- Black oil: 3,250 tons
- Gas oil (diesel): 1,950,000 liters
Regional Fuel Requirements:
- Gasoline (daily): 7,000,000 liters
- LPG (daily): 2,000 tons
- Aviation fuel (daily): 50,000 liters
- White oil / Kerosene (annual): 563,500,000 liters
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