Economist: Weak refining capacity keeps Iraq dependent on fuel imports.

Al-Maalomah/Baghdad… Economic expert Ali Al-Furaiji believes that Iraq’s weak refining capacity has kept it dependent on fuel imports.

Al-Furaiji told Al-Maalomah, “Despite being the second-largest oil producer in OPEC, Iraq has relied on imported gasoline and kerosene for many years due to weak refining capacity.”

He added, “Domestic gasoline consumption reaches 28-32 million liters per day, equivalent to 176-201 thousand barrels per day, while diesel fuel needs 28 million liters per day.” He pointed out that “operated refining capacity amounts to about 1.3 million barrels per day after the Karbala refinery and Basra expansions come online.” He explained

that “actual gasoline production in 2024 covers about 21-22 million liters per day, leaving a gap that will be filled through imports, while Iraq has achieved near self-sufficiency in kerosene since 2024.”

He explained that “imports declined from 16 million liters per day in 2022-2023 to about 6 million liters per day in 2024, with the estimated cost of these imports amounting to $4.5 billion annually, a financial drain that could have been invested in developing refineries.”

Almaalomah.me