Baghdad ties fuel distribution in the Kurdistan Region to the transfer of 50,000 barrels of crude

Ali Hama Saleh, secretary of Iraqi Kurdistan's Al-Mawqif (Position) Movement, said at a press conference on Sunday, 2 August 2026 (11 Mordad 1405), that Baghdad is prepared to extend its fuel distribution system to the Kurdistan Region, provided the Kurdistan Regional Government submits a formal request and transfers the 50,000 barrels of crude oil allocated for local consumption.

He said the movement had discussed the issue with the federal Finance and Oil Ministries, which also offered to compensate refineries in the region for processing the crude. Hama Saleh attributed the persistence of the shortages to "the interests and profits of companies affiliated with political parties." Acting Minister of Natural Resources Kamal Mohammed had earlier estimated daily demand in the region at 126,700 to 140,000 barrels, against the roughly 50,000 barrels Baghdad currently supplies, and confirmed that the KRG will again request a larger allocation for local consumption.

Fuel shortages over the past month have disrupted supplies across Iraqi Kurdistan despite the KRG's price controls. Subsidised regular gasoline sells at 750 Iraqi dinars ($0.57) per litre and commercial gasoline is capped at 850 dinars ($0.65), although many filling stations continue to receive limited deliveries. Before the July price cap, commercial gasoline sold for more than 1,300 dinars ($0.99) per litre in parts of the region. The Kurdistan Region's fuel market matters for Iran because cross border trade and transit of oil products run between the two sides.