KRG Introduces New Petrol Distribution Regulations

Source: 8/19/2013, Location: Middle East

The Kurdistan Regional Government Ministry of Natural Resources and Erbil Governorate authorities have introduced new regulations on the sale of petrol from private fuel stations in Erbil Governorate, Kurdistan Region. This move will benefit consumers, introduce a uniform standard of petrol quality in Erbil, and will help to protect Kurdistan’s environment.

Effective 25 August 2013, privately owned petrol stations in Erbil governorate will be allowed to sell only Beiji-standard petrol. Other types of petrol will no longer be permitted for sale.

After a comprehensive investigation, the Ministry found that other types of petrol, such as that marketed as ‘Super’, were usually sold at higher prices than Beiji fuel but were of the same or often worse quality, and contained unnecessary and even harmful additives. They provided no additional benefits to consumers and may even have been more damaging to vehicles and to the environment.

Beiji petrol was sold for 850 – 950 Iraqi Dinars per litre from private fuel stations, and 500 Dinars at Government stations for coupon holders who received subsidised fuel rations. Now all petrol can only be sold at a uniform price of 500 Dinars, from both government and private stations. The Kurdistan Regional Government will be the sole supplier to all petrol stations in the Kurdistan Region.

The Ministry expects that Slemani and Duhok governorates will shortly follow suit with these new regulations, so that all consumers benefit from a uniform standard of petrol quality and pricing throughout the Kurdistan Region.

Standard fuel in Kurdistan is known as ‘Beiji’, named after the Beiji refinery north of Baghdad, even when it is provided by other refineries. The Kurdistan Region has two main refineries, Bazian and Kalak, and Kurdistan will become increasingly self-reliant in petrol as the new benzene processing facilities at these plants come on line.

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