Kurdistan, Baghdad Discuss Subsidized White Oil Supply

Logos of the Ministry of Oil of the Federal Government of Iraq (left) and the Ministry of Natural Resources of the Kurdistan Regional Government (right).
Logos of the Ministry of Oil of the Federal Government of Iraq (left) and the Ministry of Natural Resources of the Kurdistan Regional Government (right).

At a Glance

  • Kurdistan seeks subsidized white oil (kerosene) from Baghdad.
  • Talks cover winter supplies for October through December.
  • Distribution date, source and household price remain undecided.
  • Region has 1,379,163 households requiring winter fuel.

Information obtained by Channel8 indicates that the Kurdistan Region Ministry of Natural Resources is holding high-level talks with Iraq's Ministry of Oil to secure subsidized white oil (kerosene) for households ahead of winter.


Key Statements and Focus Area

“No decision has yet been made on the distribution date, supply source, or selling price of white oil in the Kurdistan Region.” — Information obtained by Channel8

The Kurdistan Region is seeking arrangements similar to those used for subsidized white oil in other Iraqi provinces.


Talks With Baghdad Continue

Information obtained by Channel8 indicates that the Kurdistan Region Ministry of Natural Resources is continuing high-level discussions with Iraq's Ministry of Oil to secure subsidized white oil (kerosene) for households ahead of the winter season.

The discussions cover potential supplies for October, November and December, but no final decision has been made on when distribution would begin.

Supply Source And Price Remain Undecided

The Kurdistan Region is seeking an arrangement similar to the subsidized white oil system in other Iraqi provinces.

In those provinces, households receive white oil at a subsidized price of 30,000 Iraqi dinars, according to the information obtained by Channel8. The available information does not specify the exact volume associated with that price, so the unit is not further defined here.

For the Kurdistan Region, it has not yet been determined how much white oil would be supplied by Baghdad and how much could be provided through domestic sources.

The final retail price for households in the Kurdistan Region also remains undecided.

Household Fuel Requirements

Data from the Kurdistan Region Ministry of Natural Resources indicates that more than 250 million liters of white oil would be required under its current distribution calculations.

Iraq's 2024 census recorded 1,379,163 households in the Kurdistan Region. An allocation of 200 liters per household would require approximately 275.8 million liters in total.

The final quantity will depend on the distribution plan and the supply arrangement reached between the Kurdistan Regional Government and the federal government.

IndicatorFigure / Status
Kurdistan Region households1,379,163
Example allocation200 liters per household
Requirement at 200 liters each~275.8 million liters
White oil price in other Iraqi provinces30,000 IQD
Distribution dateNot decided
Supply sourceNot decided
Kurdistan household priceNot decided

FYI

White oil, or kerosene, is an important household heating fuel in the Kurdistan Region, making the availability and affordability of winter supplies a significant household issue. With more than 1.37 million households recorded in the region, any large-scale distribution arrangement would require substantial volumes and coordination between Erbil and Baghdad.

The main unresolved issues remain the volume and source of supply, the start of distribution and the price households will pay. An agreement with Baghdad could provide access to subsidized supplies similar to those available elsewhere in Iraq, but no final arrangement for the Kurdistan Region has been announced.

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