Iraqis queue for fuel as regional war disrupts supplies

Stranded Iraqi filling his tank from a gallon | AFP

Drivers formed long lines outside fuel stations in Baghdad on Saturday as gasoline supplies dropped in oil-rich Iraq due to import disruptions caused by the Middle East war.

Despite being OPEC’s second largest oil producer, Iraq imports oil derivatives because its refineries do not produce enough gasoline to meet domestic demand.

In recent weeks, as regional hostilities drag on, long queues have been reappearing every few days, mostly outside government-run fuel stations in Baghdad and other provinces.

Baghdad resident Ibrahim Hashem waited for two hours outside a fuel station on Friday without any luck, only to return early the next day hoping to fill his car.

“It is unreasonable that we produce so many barrels of oil a day, yet still do not have enough gasoline to meet our daily needs,” Hashem told AFP outside a fuel station in central Baghdad.

“We already suffer from traffic congestion because of the roads and lack of services. Now, it has become worse due to the gasoline shortage,” he added.

Iraq’s average daily consumption of gasoline is 33 million litres, but demand rises to 38 million when people panic over shortages, according to authorities.

The oil ministry said Friday that “regional events and the ongoing conflict are causing logistical challenges to tanker traffic, delaying their arrival at Iraqi ports.”

• Iran offers $30,000 bounty for killing, capturing US soldiers
• OPEC+ boosts September production by 188,000 barrels per day
• Iran says it sold $18bn of oil during war, ceasefire

It urged citizens to buy only the quantities they need and avoid crowding fuel stations for small amounts of gasoline.

Oil Minister Bassem Mohammed Khudair said on Friday that his ministry was addressing the “temporary shortage of gasoline” and that new shipments will arrive soon to help stabilise supplies.

Like other oil producers, Iraq has been greatly affected by the US-Iran conflict, which has choked off the strategic Strait of Hormuz.

Iraq is hugely dependent on oil exports, which make up about 90 percent of its budget revenues.

Before the war erupted in February, Iraq produced around four million barrels per day, and exported an average of 3.4 million bpd, mostly via Hormuz.

After a significant drop, Iraqi oil exports recovered to more than 2.2 million bpd in August, according to the oil ministry.

Last month, Iran’s state news agency IRNA said that over the past six months, Tehran has granted permission to “a number of Iraqi oil tankers” to pass through Hormuz.