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ERBIL, Kurdistan Region - Drivers from the Kurdistan Region on Saturday headed to Iraq's Nineveh province to fill their vehicles with government-subsidized gasoline as fuel shortages and higher prices persist across the Region, with long lines forming at petrol stations in Mosul.
The administration of a petrol station in Mosul's Arabi neighborhood told Rudaw's Naif Ramazan on Saturday that around 70 percent of the station's daily customers are from the Region’s Duhok province.
Government-run stations in Mosul sell regular-grade petrol for 450 Iraqi dinars ($0.34) per liter through a fuel card or coupon system, with each vehicle allowed up to 40 liters.
Petrol prices have risen sharply in the Kurdistan Region since the beginning of July, prompting the Kurdistan Regional Government (KRG) on Monday to mandate that regular grade petrol not be sold for more than 850 Iraqi dinars ($0.64) per litre.
Fuel shortages and subsequent mitigation efforts follow a wave of Iranian drone attacks amid renewed tensions between the United States and Iran, which have forced several international oil companies to suspend operations in the Kurdistan Region, including facilities linked to oil and gas production. The shortages are further compounded by a decline in Iranian fuel imports to Iraq and the Kurdistan Region.
The regional government extended the price caps to midgrade and premium grade fuel on Tuesday, setting maximum prices of 1,000 dinars ($0.76) and 1,200 dinars ($0.91) per litre, respectively.
Under the decision, petrol stations that fail to comply with the new price caps will be "punished."
As a result, many stations across Erbil and Duhok provinces have shut down, citing wholesale prices well above the new caps. Drivers have been waiting in long lines at the few stations still operating to fill their tanks.
Hani Suleiman, a shop owner from Duhok, said buying fuel in Mosul offers significant savings. "I bought 40 liters here for 18,000 Iraqi dinars (about$13.70), while the same amount costs more than 30,000 dinars (about $22.90) in Duhok. Commercial petrol costs nearly 40,000 dinars (about $30.50)."
Ayad Nouri, another driver, said he was unable to find government petrol in Faida before heading to Mosul. said, "I had no choice but to come to Mosul. I borrowed my brother's fuel card so I could get petrol here.”
On Saturday, Rebin Zangana, chief of staff at the KRG Ministry of Natural Resources, blamed Baghdad for the crisis, saying the federal government allocates only 50,000 barrels of crude oil per day for domestic consumption.
"We receive 50,000 barrels from the federal government, but it is not enough," Zangana told Rudaw, adding that the Kurdistan Region requires around six million liters of petrol daily, leaving a shortfall of nearly 4.5 million liters. He said Erbil has asked Baghdad to increase its crude oil allocation.
