Iraq: Fuel Crisis Exacerbates the Country’s Problems, Citizens’ Burdens

Many Iraqi provinces, including the capital Baghdad, are facing a severe fuel shortage, forcing motorists in some cases to wait for hours to get gasoline. This is placing additional burdens on citizens who are already dealing with deteriorating public services, fewer hours of available electricity, and delays in the payment of pensions and salaries for public-sector employees. Despite repeated government promises to overcome the fuel crisis, long lines of vehicles can frequently be seen at gas stations across Baghdad, Kirkuk, Babil, Basra, and most provinces of the Kurdistan Region. This is further deepening public distrust in government statements. According to observers, the current fuel crisis "is one of the consequences of the war and the ongoing state of tension between Washington and Tehran, and its negative repercussions for Iraq since the war began on February 28." At the same time, successive Iraqi governments face intense public criticism for failing to build enough oil refineries to meet domestic demand in a country that sits on vast oil reserves. "Deliberate Manipulation"? While many experts link the fuel crisis to the negative effects of the US-Iran war, particularly following the closure of the Strait of Hormuz and the disruption of most of Iraq's oil exports and foreign imports, sources close to Prime Minister Ali al-Zaidi's government do not rule out "deliberate manipulation" within the Oil Ministry that is worsening the crisis. They link this alleged manipulation to groups that were recently affected by arrests targeting senior ministry officials on charges of stealing billions of dinars and dollars. Those arrested include former Deputy Oil Minister for Refining Affairs Adnan al-Jumaili, Deputy Oil Minister for Distribution Affairs Ali Maaraj al-Bahadli, Director General of the Oil Products Distribution Company Hussein Talib Abboud, and other figures. In contrast, the Oil Ministry attributes the current fuel crisis to several factors, including increased demand and higher daily domestic gasoline consumption, technical failures that forced some production units at local refineries to shut down, and delays in the arrival of imported fuel shipments because of security tensions at ports and along regional transportation routes. Despite the lines of cars at filling stations in more than one province, Oil Minister Basim Mohammed al-Abadi insists that petroleum products are available. During a meeting attended by senior ministry officials, he said that "the temporary shortage of gasoline is being addressed" and that additional gasoline shipments would arrive soon, helping to stabilize supplies and meet citizens' needs. He added that "gasoline consumption averages around 33 million liters per day and rises to around 38 million liters when citizens become concerned." He said his ministry "continues to closely monitor supply and distribution flows and is taking the necessary measures to secure petroleum products and strengthen stability in the domestic market." Regarding the country's current oil exports following the near-total disruption caused by the US-Israeli-Iranian war, Minister al-Abadi said that "crude oil exports were around 250,000 barrels per day when the government took office, while current crude oil production has exceeded 3 million barrels per day." In a subsequent statement, the Oil Ministry explained that "the congestion at fuel stations is caused by a negative gap between production and consumption." It said the ministry had relied on imported shipments delivered through maritime entry points to make up the shortfall, but regional events and the ongoing conflict have created logistical difficulties for tanker movements, delaying their arrival or docking at Iraqi ports. No Plans to Export The Iraqi Oil Ministry on Saturday denied reports circulated by some media outlets and news agencies that it planned to export gasoline, stressing that its immediate priority is to achieve self-sufficiency. The ministry said in a statement that "the future shift toward exporting certain petroleum products depends on completing expansion work at other refineries," which it is pursuing as part of its strategic plans to transform Iraq from an importer into an exporter. The statement noted that Iraq currently exports fuel oil and naphtha, in addition to previous shipments of jet fuel and sulfur.