Oil ministry denies gasoline shortage, blames ‘crisis traders’ for Eid fuel panic

BAGHDAD — Iraq’s Oil Ministry denied Wednesday that the country is facing a gasoline shortage, saying supplies remain stable with strategic reserves of around 100 million liters and current production running at 32 million liters per day.

Ministry spokesperson Sahib al-Bazoun accused what he described as “crisis traders” of attempting to create panic over fuel supplies. “There is no crisis in oil derivatives, including gasoline,” he said, attributing the increase in demand to the Eid holiday period. He said fuel stations in Baghdad and other governorates are operating normally and called for regulating vehicle imports and expanding public transportation to address longer-term pressure on fuel demand.

Iraq exported fewer than 10 million barrels of oil in April, generating just over $1 billion against the roughly 100 million barrels and $7 billion in monthly revenues recorded before the U.S.-Israeli conflict with Iran disrupted shipping through the Strait of Hormuz. Production collapsed from around 4.3 million barrels per day before the conflict to as low as 800,000 to 1.3 million bpd as the closure of the strait cut off Iraq’s main southern export route.