Kurdistan Gasoline Prices Hit Record High Amid Baghdad Crude Price Disparity
The Kurdistan Region in Iraq is struggling to sell gasoline at a fair price due to a significant disparity in crude oil costs. The acting natural resources minister, Kamal Mohammed Salih, stated that pump prices have reached record highs above 1,500 dinars per liter (around $1), more than triple the rate charged elsewhere in Iraq.
The main obstacle is the price set by Baghdad for the crude oil supplied to the KRI, which is around 16 dollars a barrel. In contrast, central and southern refineries receive crude at about 5,900 dinars per barrel (around $4).
Kamal Mohammed Salih emphasized that matching the lower price would not fully resolve the shortage, as the KRI requires 115,000 barrels of crude daily to meet local demand. He pointed out that Kurdistan should receive around 126,000 barrels a day based on its population share, which is 12.6% of Iraq's total population.