KRG Moves to Stabilize Fuel Market With New Pricing Directives

Prime Minister Masrour Barzani ordered immediate measures to stabilize gasoline prices, strengthen fuel supplies, and requested a larger crude oil allocation from Baghdad to ease shortages across the Kurdistan Region.

Photo shows the meeting chaired by Kurdistan Region Prime Minister Masrour Barzani. (Graphics: Kurdistan24)
Photo shows the meeting chaired by Kurdistan Region Prime Minister Masrour Barzani. (Graphics: Kurdistan24)

ERBIL (Kurdistan24) - Prime Minister Masrour Barzani on Monday ordered a series of measures aimed at stabilizing gasoline prices and improving fuel availability across the Kurdistan Region, directing the Ministry of Natural Resources and other relevant authorities to move swiftly on policies designed to protect consumers while maintaining a reliable fuel supply.

The directives followed a high-level meeting dedicated to the Region's fuel market, as the Kurdistan Regional Government (KRG) intensified efforts to address pressure on gasoline supplies and rising public concern over fuel costs.

According to a KRG statement, Barzani instructed officials to implement practical solutions without delay, emphasizing that safeguarding citizens' interests must remain the government's foremost priority.

Among the immediate decisions, the government confirmed that the price of subsidized Normal gasoline will remain unchanged.

Distribution of the subsidized fuel will be limited to filling stations that comply fully with government regulations governing both pricing and fuel quality, a move intended to ensure public subsidies reach consumers while maintaining consistent standards across the market.

The meeting also focused on premium fuel grades, with the Prime Minister directing the Ministry of Natural Resources to review pricing for Super and Muhassan (High-Octane) gasoline.

Under the government's instructions, any revised pricing should better reflect prevailing market conditions while preventing excessive profiteering. The KRG also pledged to facilitate imports of the chemical additives needed to produce premium gasoline, seeking to improve supply and reduce market disruptions.

The government's response extends beyond domestic market management.

As part of its broader strategy, the KRG formally requested that Baghdad increase the Kurdistan Region's daily crude oil allocation from the current 50,000 barrels to 126,700 barrels, based on the 12.67% population share recognized by the federal government.

According to the official statement, a larger allocation would strengthen domestic fuel production capacity and help address shortages that have placed additional pressure on gasoline markets throughout the Region.

The request reflects ongoing coordination between Erbil and Baghdad over energy supplies and domestic fuel needs.

While the KRG continues to pursue internal reforms, it has also argued that a higher federal allocation is essential to improving the availability of subsidized fuel and reducing reliance on more expensive commercial supplies.

Alongside pricing and supply measures, the Prime Minister instructed authorities to strengthen oversight of the fuel sector by preventing monopolistic practices and market manipulation.

The KRG said stricter enforcement is intended to promote fair competition, discourage artificial shortages, and reinforce confidence in the gasoline market.

The directives come as the government seeks to balance consumer protection with the operational realities of fuel production and distribution.

By maintaining subsidized prices for Normal gasoline, reviewing premium fuel pricing, facilitating production inputs, and pursuing a larger crude oil allocation from Baghdad, the KRG says it aims to ease pressure on households while supporting a more stable and sustainable fuel market.

According to the KRG statement, the measures form part of a broader government effort to respond to ongoing fuel challenges through coordinated policy action, closer cooperation with federal authorities, and stronger market oversight intended to ensure reliable supplies for citizens across the Kurdistan Region.

Summary

Prime Minister Masrour Barzani directed immediate measures to stabilize gasoline prices, protect consumers and improve fuel supplies, while urging Baghdad to raise the Kurdistan Region's crude oil allocation to 126,700 barrels per day to support domestic production and curb market pressures.