Kurdistan Oil Output Rebounds as KRG Pushes for Equal Refining Costs
The Kurdistan Region's oil production has recovered to between 220,000 and 230,000 barrels per day as companies resume operations. Acting Natural Resources Minister Kamal Mohammed Salih said that all oil companies have returned to work, but the Sarsang field remains offline due to damage from drone attacks.
The recovery comes after repeated security disruptions affected oil infrastructure and production in the region. The KRG is now pushing Baghdad for equal refining costs to cut gasoline prices, which are currently 750 dinars per liter under a subsidized program. Salih said that if the federal government calculates the cost of refining at $4 per barrel, as it does centrally, the Region could provide gasoline to residents for 450 dinars per liter.
The KRG is awaiting the Iraqi Parliament's Oil and Gas Committee recommendations to Prime Minister Ali Zaydi before a final decision. Salih said that the Region would abide by whatever decision is made. The negotiations follow proposals submitted by KRG officials calling for Baghdad to cover refining and transportation costs or provide the Kurdistan Region with its population-based share of federal fuel subsidies.
In the meantime, the KRG continues its existing subsidized gasoline program at 750 dinars per liter. More than 3.7 million liters were allocated Saturday for distribution through 103 filling stations across the Kurdistan Region, serving nearly 93,000 vehicles.