At a Glance

• Iraq’s Parliament has questioned the Oil Ministry over a gasoline shortage and disruptions to fuel imports.
• The ministry says domestic gasoline production remains below daily consumption, requiring additional imports to close the gap.
• Parliament is also pressing the government to resolve the issue of 50,000 barrels allocated to the Kurdistan Region.
• Disruptions affecting shipping through the Strait of Hormuz have complicated Iraq’s fuel and crude-oil logistics.

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Iraq’s Parliament has raised concerns over a widening gasoline shortage and the impact of disruptions around the Strait of Hormuz, as the Oil Ministry outlines measures to secure domestic fuel supplies.

The parliamentary session also addressed the 50,000 barrels allocated for the Kurdistan Region and called for faster action on unresolved oil-sector issues.

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KEY STATEMENTS

• On the fuel shortage: Oil Minister Basim Mohammed Khudhair said war-related restrictions on imports have created a gap between domestic gasoline production and consumption.
• On domestic supply: The ministry reported current derivative production at about 37 million liters per day, while officials said at least 5 million liters of additional gasoline per day are needed to bridge the supply gap.
• On strategic reserves: The minister said Iraq’s strategic gasoline reserves currently stand at approximately 350 million liters, which have been used during the fuel crisis.
• On the Kurdistan Region: Parliament has given the Oil Ministry additional time to address the 50,000-barrel issue and coordinate with the Kurdistan Region’s Ministry of Natural Resources.
• On Hormuz: Iraq’s oil marketing authorities have said tanker movements through the Strait are being taken into account when managing crude sales amid the disruption.

FUEL SHORTAGE

The parliamentary discussion comes amid fuel shortages and long queues at petrol stations across several Iraqi governorates.

According to the figures presented by the Oil Ministry, domestic gasoline production remains below national consumption, leaving Iraq dependent on additional imports to meet daily demand. Parliament members called for increased refinery output and a plan to achieve greater self-sufficiency.

The ministry has also turned to strategic reserves to help stabilize domestic supplies. Parliament has demanded measures to rebuild those reserves while accelerating refinery projects, including the FCC unit in Basra.

HORMUZ DISRUPTIONS

The fuel shortage is unfolding as shipping through the Strait of Hormuz remains severely disrupted.

Reuters reported on September 21 that only a small number of commodity vessels had passed through the strait over the preceding weekend, compared with substantially higher traffic before the conflict that began on February 28. Iraqi oil exports have continued, but shipping constraints have complicated the movement of crude and petroleum products.

Iraq has also been working to expand alternative export routes. Reuters reported last week that Baghdad began a pilot operation transporting crude by road from southern oilfields toward Kirkuk for potential shipment through Turkey’s Ceyhan port.

SOMO AND TANKER MOVEMENTS

The State Organization for Marketing of Oil, SOMO, has indicated that tanker availability and movements through Hormuz are factors being considered in Iraq’s crude-export operations.

Recent parliamentary reporting said SOMO’s export capacity had reached more than four million barrels per day when accounting for the broader oil movement and export system, while the organization continues to manage sales according to available tanker capacity and market conditions.

The figures should therefore be distinguished from actual crude exports, which can vary according to shipping capacity, routes and operational conditions.

THE 50,000-BARREL KURDISTAN REGION FILE

The parliamentary session also brought renewed attention to the allocation of 50,000 barrels per day connected to domestic fuel needs in the Kurdistan Region.

The Kurdistan Regional Government has separately asked Baghdad to increase the allocation to 140,000 barrels per day, arguing that the current 50,000-barrel allocation does not meet regional demand. The KRG proposed either receiving additional crude for refining or obtaining equivalent quantities of refined petroleum products while transferring the existing allocation to Baghdad.

The issue remains tied to the broader legal and financial arrangements governing oil and budget relations between Baghdad and Erbil.

PARLIAMENTARY DEADLINE

Speaker Haibat al-Halbousi has instructed the Oil Ministry to accelerate work on the unresolved 50,000-barrel issue and submit its findings.

The parliamentary discussion also called for coordination between the federal Oil Ministry and the Kurdistan Region’s Ministry of Natural Resources, including efforts to increase oil production in the Region.

Parliament members meanwhile urged the ministry to address shortages in Nineveh, Kirkuk and the Kurdistan Region, alongside wider measures to increase domestic refining capacity.

IRAQ'S OIL POSITION

Iraq remains heavily dependent on oil revenues, making disruptions to crude exports and refined-product imports particularly significant for the country’s economy and domestic energy security.

The current crisis illustrates a distinction between Iraq’s large crude-oil production capacity and its ability to supply refined fuels domestically. Parliament has therefore focused not only on crude production and exports, but also on refinery capacity, gasoline imports, strategic reserves and alternative transportation routes.

DATA TABLE

Indicator	Latest Figure / Position
Iraq’s reported oil production/export system	More than 4 million barrels/day
Gasoline production	28.875 million liters/day*
Gasoline consumption	34.5 million liters/day*
Estimated gasoline gap	5.6 million liters/day*
Strategic gasoline reserves	350 million liters
Current KRG allocation	50,000 barrels/day
KRG requested allocation	140,000 barrels/day
Additional gasoline needed	At least 5 million liters/day

*Figures supplied during the parliamentary discussion; the Parliament separately reported total petroleum-derivative production at about 37 million liters per day.

FYI

Iraq is confronting a two-sided energy challenge: maintaining crude exports while securing enough refined fuel for domestic consumption. The disruption around Hormuz has exposed the importance of alternative shipping and export routes, while the gasoline shortage has renewed pressure on Baghdad to expand refining capacity and reduce dependence on imported fuel. At the same time, the unresolved 50,000-barrel arrangement with the Kurdistan Region remains linked to wider constitutional, budgetary and oil-sector negotiations between Baghdad and Erbil.

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