Cabinet reviews fuel subsidy, lawmaker says Shafaq News

Iraq’s Council of Ministers is reviewing recent decisions to remove fuel subsidies for some sectors amid efforts to address fuel shortages across the country, a member of parliament’s Oil, Gas and Natural Resources Committee said on Thursday.

Mohammed Al-Nuaimi told Shafaq News that a delegation from the committee visited the Oil Products Distribution Company to discuss shortages of gasoline and kerosene. “The crisis is on its way to being resolved,” he said.

Al-Nuaimi said the Cabinet’s recent decisions to remove fuel subsidies had caused new supply problems, adding that ministers were considering revising the measures for some sectors.

The Cabinet had decided to remove subsidies on petroleum product prices for various sectors starting Sept. 1, while maintaining subsidized prices for gasoline, diesel, kerosene and liquefied petroleum gas supplied to citizens.

Iraq’s Oil Products Distribution Company said the price increases apply to government institutions and other sectors but not to fuel supplied directly to citizens, which remains available at subsidized prices.

Last week, Diyala Provincial Council member Rashad Al-Tamimi said fuel shortages in the eastern province would be fully resolved this week after weeks of supply problems and long queues at filling stations. He said the council had coordinated with oil product distribution officials to restore supplies across the province.

Iraq faced renewed shortages of gasoline and gasoil, a fuel widely used by heavy vehicles. The Oil Ministry previously attributed the shortages to delayed shipments after the Iran-US conflict disrupted tanker movements, adding pressure to a gap between domestic production and demand. The ministry said new shipments would arrive soon, with daily gasoline consumption at about 33 million liters and rising to around 38 million liters during periods of higher demand.

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