Oil Ministry says recent gasoline shipments stem from preexisting contracts signed before import halt

BAGHDAD — Iraq’s Oil Ministry said Sunday that a gasoline shipment that recently arrived at Iraqi ports, along with another expected in the coming days, is part of earlier import contracts that cannot be canceled or rescheduled at this stage. The ministry said financial and logistical arrangements for the shipments were completed before the government’s recent decision to halt fuel imports.

“The tanker that docked at Iraqi ports, and another scheduled to arrive in the next few days, are part of earlier import contracts for gasoline,” the ministry said in a statement. “All financial and logistical procedures — including shipping, loading, and routing — were finalized before the decision to stop importing gasoline.”

The statement added, “It is not possible to cancel or reschedule these two shipments at this stage to avoid heavy financial penalties related to delaying or preventing the docking of the tankers.”

The ministry said the decision to stop importing gasoline was based on “a new and tangible reality in the increase of domestic production of petroleum derivatives.” It called the achievement “a result of the efforts of the Oil Ministry and the government,” noting that Iraq’s refining capacity had reached levels that ensured self-sufficiency.

“This development in production capacity has enabled Iraq to become an exporter of several petroleum products, including fuel oil, naphtha, liquefied gas, condensates, and jet fuel,” the statement said. The ministry also announced plans to begin exporting surplus diesel to boost state revenues.

The Oil Ministry urged the public to rely on official sources for information “to support the path of national achievement and avoid misinterpretation.”

The clarification followed a decision issued on Nov. 4, 2025, when Prime Minister Mohammed Shia Al-Sudani ordered the suspension of gasoline, liquefied gas, and kerosene imports after claiming Iraq achieved self-sufficiency in domestic fuel production. The order, signed by Ihsan Yassin Al-Awadi, director of the prime minister’s office, instructed the Oil Ministry to regulate consumption and direct surplus output toward export.

That decision came after refinery expansions and new projects in Basra and Karbala boosted Iraq’s refining capacity to 1.15 million barrels per day, marking the country’s transition from a fuel importer to an exporter of refined petroleum products.