ERBIL, Kurdistan Region - Authorities in Erbil have begun enforcing government-mandated gasoline price caps on Tuesday after Kurdistan Region Prime Minister Masrour Barzani ordered lower fuel prices at the pump to ease pressure on residents following weeks of shortages and soaring market prices.
The Kurdistan Regional Government (KRG) has ordered the reduction of gasoline prices, mandating that gas stations must sell government-subsidized regular gasoline at 750 Iraqi dinars ($0.57) per liter and regular commercial gasoline at no more than 850 dinars ($0.64) per liter amid warnings that violators will face legal penalties.
"Filling stations are committed to implementing the prime minister's decision," Erbil Governor Omed Khoshnaw said in a statement on Facebook following the conference, adding that subsidized fuel will be distributed fairly and refineries have been instructed to ensure adequate supplies.
The move comes as the Kurdistan Region faces a shortage of fuel due to a temporary suspension in operations following a wave of drone attacks that targeted the Region’s key energy infrastructure on Thursday, and to a lesser degree, a halt in Iranian fuel imports.
Dana Gas suspended production at the Khor Mor gas field in Sulaimani province's Chamchamal district on Thursday, contributing to widespread power shortages, while Gulf Keystone and HKN Energy halted operations at the Shaikan and Sarsang oil fields in Erbil and Duhok provinces last week following separate drone attacks.
In a separate statement Tuesday, Khoshnaw said most of Erbil's 266 filling stations had already updated their prices to comply with the new cap. He said inspection teams will continue monitoring fuel prices and quality, warning that stations violating the rules will be subject to "the toughest legal measures."
Khoshnaw said the ministry of natural resources will increase fuel allocations and that authorities are planning to introduce an electronic fuel card system to ensure a more equitable distribution of subsidized gasoline.
The Ministry of Natural Resources had announced on Monday that it would increase supplies of subsidized gasoline while capping commercial gasoline prices at 850 dinars ($0.64) per liter. The ministry warned that any filling station charging above the new ceiling would face legal action.
The new cap follows a recent decline in commercial gasoline prices after the Kurdistan Region allowed fuel imports from federal Iraq to help ease shortages.
Earlier this month, regular commercial gasoline in Erbil fell from 1,175 dinars ($0.89) to 1,095 dinars ($0.83) per liter after imports were approved.
Before the recent supply disruptions, commercial gasoline generally sold between 895 ($0.68) and 950 dinars ($0.72) per liter, while government-subsidized gasoline remained fixed at 750 dinars ($0.57) per liter for more than a year.
Deputy Oil Minister Izzat Sabeer on Tuesday told Rudaw’s Sangar Abdulrahman that Iraq is producing around 2 million barrels of oil per day, “operating at around 50 percent,” making it more difficult to supply fuel to the Kurdistan Region.
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