KRG caps regular gasoline at 850 dinars after price spike

ERBIL — The Kurdistan Regional Government’s Ministry of Natural Resources capped the retail price of commercially sold regular gasoline at 850 dinars (about $0.56) per liter on Monday, moving to ease a weekslong fuel shortage that had pushed prices sharply higher across the region.

In the directive, the ministry said subsidized regular gasoline distributed through it would continue to sell at 750 dinars (about $0.49) a liter, and pledged to increase supply to the market. Commercial stations exceeding the 850-dinar ceiling would face legal action, it said.

The order follows weeks of shortages and rising prices, with long queues at subsidized stations and drivers reporting paying as much as 1,400 dinars (about $0.92) a liter at some commercial outlets. Earlier this month the ministry authorized gasoline imports and told border crossings to fast-track fuel tankers to boost supply. Officials attributed the shortage to reduced crude deliveries to local refineries, which cut production of subsidized gasoline, while commercial prices climbed as demand outpaced supply.

The fuel crunch has coincided with wider disruption to the region’s energy sector. Last week, production at the Khor Mor gas field was temporarily suspended over security threats amid rising U.S.-Iran tensions, cutting electricity generation, though the government said household cooking gas supplies would continue after securing federal Oil Ministry approval to meet the region’s daily demand.