Production of “improved gasoline” has been halted in Baghdad and the provinces.
Production of “improved gasoline” has been halted in Baghdad and the provinces.
2025-08-01 04:47
Shafaq News – Baghdad
An informed oil source revealed on Friday that the production of improved gasoline has been halted across all Iraqi provinces, attributing the reason to a halt in imports from abroad. This comes at a time when domestic capacity remains insufficient to meet rising domestic demand.
The source told Shafaq News Agency, “The crisis in the upgraded gasoline that most gas stations across the country are experiencing is due to the halt in imports of this material from several external sources that used to cover a large proportion of daily needs, for reasons related to financing and logistical contracts.”
He explained that “the remaining quantities of improved gasoline are processed locally at the Karbala, Dora, and Zlija refineries, then delivered to the Petroleum Products Distribution Department for distribution. However, these quantities do not cover the growing demand, causing shortages and congestion at gas stations.”
Prior to the shutdown crisis, Iraq’s daily imports of refined gasoline ranged between 4,000 and 5,000 cubic meters, meaning that any disruption to the external supply chain would immediately lead to an internal crisis, as is currently the case.
In this context, economic expert Hassan Jassim told Shafaq News Agency, “Iraq faces a chronic gap in the production of petroleum derivatives, most notably refined gasoline. Local production covers no more than 60% of domestic consumption, despite ongoing development projects at some refineries.”
He added, “The current crisis exposes the fragility of the refining energy system and Iraq’s excessive reliance on imports without securing strategic reserves or flexibility in supply,” noting that “the lack of transparency in oil contracts and bureaucracy in implementing energy projects has exacerbated the recurring crises.”
Jassim called on the government to “expedite the completion of delayed refining projects and partially liberalize the fuel market to enable the private sector to play a complementary role in production and distribution,” warning that “the continuation of the crisis could impact the transportation, services, and local production sectors.”
Iraq is one of the countries that partially relies on imports to meet its needs for refined gasoline, despite having several major refineries.
Although the modern Karbala refinery recently entered service, producing up to 8,000 to 9,000 cubic meters of refined gasoline per day, this quantity only covers a portion of the country’s needs. The Kirkuk refinery also recently began trial production with an expected capacity of 1,600 cubic meters per day, which does not fill the gap resulting from the halt in imports.
shafaq.com
