Iraqi Oil Minister Rejects Increase in Kurdistan Region’s Crude Oil Allocation, MP Says

MP Sipan Sherwani says Baghdad has rejected the Region’s request for higher crude oil deliveries, while lawmakers push for a political solution to the fuel crisis

Iraqi MP Sipan Sherwani, L, Iraqi oil minister Bassim al-Abadi. (Graphic: Kurdistan24)
Iraqi MP Sipan Sherwani, L, Iraqi oil minister Bassim al-Abadi. (Graphic: Kurdistan24)

ERBIL (Kurdistan24) — The Iraqi Oil Minister has rejected a request to increase the Kurdistan Region’s allocation of crude oil, Iraqi MP Sipan Sherwani said Wednesday, as Baghdad and Erbil continue efforts to resolve a fuel shortage affecting the Region.

Speaking at a press conference in Baghdad, Sherwani said he had discussed the issue directly with the Iraqi oil minister Bassim al-Abadi and urged him to increase the amount of crude oil supplied to the Kurdistan Region as part of a broader effort to address its fuel needs.

Sherwani said he had asked the minister why Baghdad could not provide additional crude oil to the Region in exchange for supplying fuel, referring to a proposal involving 50,000 barrels of crude oil and around seven million liters of gasoline.

According to the lawmaker, the oil minister responded that Iraq itself imports fuel and therefore does not currently have the capacity to provide fuel supplies to the Kurdistan Region.

The minister also stressed that resolving the issue would require a political decision between the federal government and the Kurdistan Regional Government (KRG), Sherwani said.

Kurdistan Region requested 115,000 barrels

Sherwani disputed claims that the KRG had requested only 50,000 barrels of crude oil per day, saying official documents show that the Region has been requesting 115,000 barrels per day since March 2025.

He said the Kurdistan Region had formally sought an increase in crude oil supplies and that Baghdad should address the request as part of efforts to resolve the ongoing fuel crisis.

Sherwani also announced that Iraq’s Council of Ministers is expected to receive the Kurdistan Region’s Minister of Natural Resources and the federal Oil Minister on Thursday for discussions aimed at finding a solution to the fuel problem.

He said both ministries had been asked either to send their ministers personally or appoint representatives to attend the meeting.

The Iraqi lawmaker said he would support any measure aimed at resolving the fuel shortage, provided that it remains within the framework of Iraq’s Constitution and laws and guarantees the rights of Kurdistan Region residents and their equal treatment with citizens elsewhere in Iraq.

169 lawmakers sign parliamentary demand

Sherwani said he had collected 169 signatures from members of Iraq’s parliament calling on the federal Oil Minister and Prime Minister Ali Falih Al-Zaidi either to increase the Kurdistan Region’s crude oil allocation or take any other necessary measure to resolve the crisis.

He argued that since the KRG has formally requested an increase in crude oil production and supplies, the federal Oil Ministry must respond to the request and assume its responsibility for helping resolve the fuel shortage.

The MP also said that Farhad Atroushi, deputy speaker of the Iraqi parliament, had formally asked Prime Minister Al-Zaidi to intervene and resolve the issue.

According to Sherwani, Al-Zaidi subsequently sent an official letter to the federal Oil Ministry requesting that the situation be addressed.

Sherwani said the Oil Minister should therefore comply with decisions issued by the Iraqi Council of Ministers and take the necessary steps to resolve the fuel crisis.

The dispute comes amid broader disagreements between Baghdad and the Kurdistan Region over oil exports, revenue-sharing arrangements and the management of the Region’s energy sector, with both sides facing continued pressure to reach practical mechanisms that can ensure regular oil production, revenue transfers and fuel supplies.