A fuel management programme approved by the Kurdistan Regional Government (KRG) in June is being put into effect, MEED has been told.

The KRG says shortages have developed as a result of the it taking control of Kirkuk, Sinjar and other areas it claims following the collapse of Iraqi army resistance to Islamic State in Iraq & Levant (Isis). Expanded operations by Kurdish Peshmerga have also increased demand for refined products.

The KRG says that areas under its control before 10 June were sufficiently supplied by local refineries

The elimination of production at the Baiji refinery, Iraq’s largest distilled petroleum producer, which Isis fighters claimed it had captured on 24 June has contributed to problems. Refined products from refineries in KRG which are subject to government subsidies are being exported in black-market deals to other Iraqi provinces where prices have subsequently soared.

A KRG spokesman said that companies are being encouraged to import refined petroleum products into regions under KRG control. Residents who are financially capable have been asked to buy gasoline from private petrol stations.

“This allows residents with limited income a better opportunity to fill their vehicles at government gasoline stations via the ration card system,” a statement issued by the KRG said.