Oil & Gas

Iraq is currently finalizing its preparations for exporting diesel (gas oil) after achieving self-sufficiency by completing necessary logistical procedures. The Ministry of Oil announced its plans in a statement seen by the Washington-based Specialized Energy Platform on Monday, May 6, 2024. Iraq primarily uses diesel domestically, but it exports surplus quantities to Lebanon under a 2020 agreement to supply about one million tons for power stations in Beirut, in exchange for services and goods from Beirut.

The Iraq Oil Ministry's Undersecretary for Refining Affairs, Hamid al-Zubaie, stated that surplus diesel will be exported to local markets after meeting domestic needs, as reported by the news agency "AWA." Baghdad is currently finalizing logistical procedures at ports to facilitate exports, aiming to maximize state treasury revenues.

Iraq is striving to leverage all available energy sources, particularly oil derivatives, to boost economic revenues and overcome past years' crises. The ministry's petroleum products distribution company has announced the recovery of over 950 million dinars ($730,000) from seized fuel intended for smuggling. This effort, overseen by the Ministry of Oil, aligns with the national strategy to combat corruption and smuggling.

Additionally, Iraq announced in 2022 its plan to subsidize fuel oil to support national industries and the private sector, offering it at 550,000 dinars ($4,200) per ton. The government aims to support local industries by selling fuel oil at subsidized prices, including 100,000 dinars per ton to brick factories. Despite the price difference for export, the government emphasizes local utilization to minimize losses, with exports exceeding 5,000 billion dinars annually.