Fuel subsidy cuts strain Iraqi producers, MP warns

Shafaq News- Baghdad

Rising fuel costs are putting pressure on Iraqi consumers and producers, lawmaker Inaam Alaa Al-Din of the National Approach Bloc (Al-Nahj Al-Watani) said on Sunday, warning that higher production costs could push up prices for construction materials and other goods.

During a press conference, Alaa Al-Din pointed to difficult conditions facing the agricultural sector, including higher diesel prices, delayed payments to farmers and the water crisis, warning that removing subsidies on fuel oil and other petroleum products would directly affect producers and consumers.

She urged the government to ensure sufficient supplies of subsidized fuel for the industrial and agricultural sectors and establish a clear mechanism to support domestic production.

Iraq, including the Kurdistan Region, has faced renewed fuel shortages, with long lines forming at filling stations as motorists wait for supplies.

Protests have also taken place in several provinces. Farmers in Karbala demonstrated over higher diesel costs and supply restrictions, while farmers, factory owners and construction-equipment operators in Al-Muthanna protested fuel-price increases.

The Oil Ministry has said domestic diesel consumption exceeded production during the summer peak. Separately, it attributed recent gasoline shortages to delayed imports as regional tensions disrupted tanker movements.

The ministry said gasoline consumption averages about 33 million liters per day and can rise to around 38 million liters during periods of heightened demand.

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