Kurdistan Gasoline Prices Reach Record High Amid Federal Fuel Shortage

Kurdistan Region's gasoline prices have hit record highs due to the federal government supplying crude oil at an inflated price, according to Kamal Mohammed Salih, the KRI's acting natural resources minister. Salih stated that pump prices exceed $1 per liter and are over three times higher than in other parts of Iraq, where regular gasoline costs around 450 dinars ($0.30) per liter.

The obstacle lies with the price set by Baghdad for crude oil delivered to the KRI. The Oil Ministry charges 5,900 dinars a barrel ($4) to refineries in central and southern Iraq but demands 16 dollars a barrel from the Kurdistan Region. Salih emphasized that even matching this lower price would not resolve the shortage entirely, as the region needs 115,000 barrels of crude daily.

The KRI has been allocated only about 12.6% of the national budget and is entitled to a share based on its population, which is around 2.9 million officially registered vehicles. However, this has long been contested between Erbil and Baghdad in disputes over oil revenue and federal transfers.