On Wednesday, Kurdistan Regional Government (KRG) Minister of Natural Resources Kamal Mohammed Saleh called for an increase of the 50,000 barrels of oil allocated for consumption in the Kurdistan Region of Iraq.

“By all standards, the region’s share of crude oil for domestic consumption should be more than double its current allocation,” Minister Saleh said in a response to a statement from Iraqi Oil Minister Basim Mohammed Khudair al-Abadi. 

“The allocation of 50,000 barrels for domestic consumption in the region was the result of a temporary agreement and was not something we chose or wanted. The interests of the citizens of the Kurdistan Region are our highest priority,” he said.

“Therefore, if the Federal Ministry of Oil is prepared to discuss providing all types of fuel at subsidized prices according to the region’s share of the population, we are ready to negotiate, while taking into account the region’s constitutional rights, so that the Kurdistan Region’s genuine and fair share is determined, just as it is for all other parts of Iraq.”

In July, the KRG asked Baghdad to raise the Kurdistan Region’s daily crude allocation from 50,000 to 126,700. 

Fuel prices across the Kurdistan Region have surged to record highs in recent weeks, even after the KRG imposed price ceilings in July.

KRG Prime Minister Masrour Barzani told reporters on July 27 that fuel prices in the Kurdistan Region are not higher, but that Iraq heavily subsidizes its fuel by billions of dollars, absorbing massive financial losses to provide fuel for domestic use.

“Based on the 12.6% ratio that the federal government currently applies to our dealings, the Kurdistan Region is entitled to 126,700 barrels of oil. This is the legitimate quota of fuel that should be available to the people of Kurdistan. However, unfortunately, a previous administration in Baghdad imposed a cap, declaring that we were only entitled to 50,000 barrels for domestic use and nothing more,” he told reporters.