ERBIL, Kurdistan Region – The price of commercial gasoline in Erbil has dropped by 80 Iraqi dinars ($0.06) per litre after the Kurdistan Region's Ministry of Natural Resources allowed the entry of fuel imports from federal Iraq, easing recent shortages. Taxi drivers welcomed the reduction but said prices remain too high, with fuel consuming nearly half of their daily earnings.
The price of regular commercial gasoline at most stations in Erbil fell on Tuesday from 1,175 dinars ($0.89) to 1,095 dinars ($0.83) per litre The decrease follows a June 2 decision by the Ministry of Natural Resources that allows gasoline to be imported into the Kurdistan Region from all Iraqi provinces.
Dyar Zrar, who has worked as a taxi driver for six years, told Rudaw's Dilnya Rahman, "I had the chance to fill my car, but I had to wait two hours in line."
“The price has gone down, but it is still high. If we earn 50,000 dinars ($38) a day, around 25,000 dinars ($19) goes to gasoline," he said, complaining about long queues at government-supported fuel stations.
Fuel shortages intensified after the US-Israel conflict with Iran disrupted operations at southern Iraqi refineries and prompted the withdrawal of foreign companies, reducing production of high-octane gasoline. The Kurdistan Regional Government supplies gasoline from its own refineries independently of Baghdad, but the suspension of Iranian fuel imports pushed commercial gasoline prices in the Region higher.
Many drivers in Erbil now hope the recent import decision will lead to further price reductions, bringing commercial gasoline below 1,000 dinars ($0.76) per litre in the coming days and easing pressure on both taxi drivers and consumers.
Fuel station operators said prices could decline further if wholesale supply costs continue to fall. "Two days ago we were selling at 1,125 dinars ($0.85) per litre. Today it is 1,095 ($0.83) dinars," Dana Abdulsamia, manager of a filling station in Erbil, told Rudaw.
"If suppliers lower their prices further, we will reduce ours as well," he added.
Commercial gasoline prices in the Kurdistan Region averaged between 895 ($0.68) and 950 dinars ($0.72) per liter before the recent regional crisis disrupted fuel supplies, driving prices as high as 1,175 dinars ($0.89). Government-subsidized gasoline, sold at 750 dinars ($0.57) per liter, has remained unchanged for more than a year.
Another taxi driver, Zubair Ismail, called for designated taxi-only fuel queues. "The government price of 750 dinars is good for ordinary citizens, but for us who rely on our cars for work, we hope the price can fall to between 450 and 500 dinars ($0.34-0.38) per liter," he said.
The Iraqi oil ministry said in mid-June that Baghdad remains committed to US sanctions restricting Iranian oil imports and will instead import gasoline through the state-owned State Oil Marketing Organization (SOMO) to address shortages. Iraqi officials said domestic production currently stands at 30 to 31 million liters per day, below daily demand of 34.5 million liters.
