Drivers in Iraq's northern Kurdish region are facing severe gasoline shortages, resulting in overnight queues in Irbil. The crisis is linked to production drops at the Khor Mor gas field amid regional security instability.
How drone threats at the Khor Mor field triggered the shortage
The current fuel scarcity is directly tied to security volatility involving Iran-backed Iraqi militia groups and U.S. forces. according to the report, the Dana Gas company, which operates as the largest energy entity in northern Iraq, has been forced to reduce production at its Khor Mor gas field due to these threats, which have specifically included drone attacks.
This production dip occurs against a backdrop of broader regional conflict, where militia groups target American interests and the U.S. military responds with strikes on militia bases. Additionally, Kurdish opposition groups based in Iraq have faced Iranian aggression, turning critical energy infrastructure into a casualty of geopolitical friction.
Barzani's push for 126,700 barrels of daily crude
Prime Minister Masrour Barzani of the Kurdish regional government is seeking an urgent intervention from the central government in Baghdad to stabilize the market.. As reported, Barzani has called for Baghdad to increase the region's daily crude oil allocation for domestic use from 50,000 barrels to approximately 126,700 barrels.
This request is intended to boost immediate fuel supplies and lower the cost for consumers. The reliance on Baghdad for these allocations underscores the complex and often strained administrative relationship between the semiautonomous northern region and the central Iraqi state.
The 40-liter limit and 45-degree heat in Irbil
The human cost of the shortage is most visible in Irbil, where temperatures have climbed above 45 degrees Celsius. To manage the dwindling supply, government-run stations have implemented strict rationing, limiting each family to a single 40-liter fill-up twice per week.
The desperation of drivers is acute; some, like car dealer Abdullah Hamad, report waiting for hours in lines that stretch beyond the sight of the pumps. At one operating station, attendant Ameen Karwan noted that a morning delivery of 36,000 liters was barely enough to serve a fraction of the waiting vehicles, forcing many to disable air conditioning to save every drop of fuel.
A 90% budget reliance amidst local pump failures
The crisis highlights a stark paradox in the Iraqi economy, which relies on oil revenues for roughly 90% of its national budget.. Despite the abundance of natural resources in the soil, residents of Irbil have historically faced higher fuel prices than those in Baghdad, even before the current security-driven shortages.
This systemic inefficiency suggests that the issue is not a lack of raw material, but rather a failure of distribution and security. The volatility of the Strait of Hormuz has previously complicated energy flows, but the current crisis is an internal failure of production and regional coordination.
The silence of private stations and the Baghdad response
A critical factor in the current collapse is the disappearance of private fuel providers.. The report indicates that many private gas stations shuttered their operations after regional authorities mandated lower pump prices, as owners refused to sell fuel at the government-fixed rate.
Significant questions remain regarding the central government's timeline for responding to Prime Minister Barzani's request for increased oil allocations. Furthermore, it remains unclear whether Dana Gas can restore full production at the Khor Mor field without a formal ceasefire or a shift in the security posture of the Iran-backed militias.
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