Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil attributed the current nationwide gasoline shortage on Thursday, June 4, 2026, to the abrupt withdrawal of a foreign contractor from a critical refinery project in the south due to security concerns, which happened to coincide with a record-breaking surge in domestic fuel consumption.
The ministry stated that the departure of the foreign firm responsible for executing the Fluid Catalytic Cracking (FCC) unit at the South Refineries caused an immediate shortfall of 4 to 5 million liters per day of high-octane gasoline. This supply deficit hit the market precisely as daily domestic consumption numbers shattered previous records. Driven heavily by the high traffic of consecutive holiday periods and religious pilgrimages, daily demand climbed to approximately 34 million liters, peaking at an unprecedented 35 million liters on Wednesday,
June 3, 2026. While national refineries are currently operating at maximum capacity to sustain a steady baseline production of 30 million liters per day, the negative deficit has forced the Ministry of Oil to actively draw from and manipulate available strategic fuel reserves to close the 4 to 5 million liter daily gap.
The energy sector’s logistical strains come amid broader efforts to stabilize foreign investments across Iraq’s energy landscape. Following months of operational shutdowns by foreign oil corporations in the Kurdistan Region—which had faced repeated rocket and drone strikes since February—Prime Minister Ali Falih al-Zaidi stepped in to restore security confidence.
During a high-level security meeting with an official delegation from Erbil on Wednesday, which included the Army Chief of Staff, the Prime Minister issued strict directives to enforce total protection over the region’s petroleum infrastructure. The executive order officially clears the path for international oil companies to resume their exploration and extraction operations starting Friday.
