Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Petrol crisis bites in Iraq's Kurdish region  Join our daily free Newsletter

MENAFN - AFP - 26/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) The shutdown of Iraq's biggest refinery, roads blocked by fighting, and skyrocketing demand have created the worst oil crisis in years in the country's autonomous Kurdish region.At petrol stations across the three provinces of the northern region, but particularly in and around the city of Dohuk and the Kurdish regional capital Arbil, lines extend for hours, sometimes even days."I've been here for two hours, and I'm hoping I'll be able to fill up in about another half hour," said 34-year-old engineer Raad, who was queueing in Arbil.He is even lucky to have found a station with gasoline in the city.Many have shut down after running out, blocking entrances and exits with plastic chairs to keep out hopeful customers.The crisis began shortly after Sunni militants, led by jihadists from the Islamic State of Iraq and the Levant, launched a lightning offensive that has overrun major parts of five Iraqi provinces.As the militants advanced, supply routes were cut and fighting led to a shutdown of the country's largest oil refinery near the town of Baiji, south of the militant-held city of Mosul.The crisis is a "perfect storm of supply and demand problems," said Patrick Osgood, the Kurdistan bureau chief for Iraq Oil Report."On the supply side, the Kurdistan region isn't entirely self-sufficient on refined products including gasoline," he said."It probably produces 60 percent of its demand, but 40 percent it was getting from Baiji."

On the demand side, there has been panic-buying, he said, but also shortages because petrol has been diverted to the city of Kirkuk.Long disputed between the Iraqi federal government and the regional Kurdish authorities, Kirkuk is now being protected by Kurdish peshmerga forces ringed around it after Iraqi army troops abandoned their posts during the militant onslaught.Osgood said after the peshmerga forces moved in, the Kurdish government began routing petrol from one of two refineries in the Kurdish north to Kirkuk, creating shortages in Arbil and elswhere.
- Black market booming -The crisis has also been exacerbated by a burgeoning black market and rationing imposed by the Kurdish government.Outside the city of Dohuk, on the road to Mosul, dozens of young men call out to drivers as they pass."We have petrol, we have petrol!" they shout, some holding syphons in their hands.The gasoline on offer is stored in plastic water containers lined up on the side of the road and costs four time as much as the official price in Kurdish territory of 500 Iraqi dinars (40 US cents) a litre.Most people cannot afford to spend that much and those who can say they avoid it because they fear it has been adulterated and will ruin their cars.The Kurdish government is allotting days for cars to fill up depending on their licence plate number and is also limited the amount customers can buy to 30 litres at a time.This has not prevented people from filling up and then selling the petrol."There shouldn't even be a petrol crisis," 63-year-old Abdulkarim Othman said angrily as he stared at the line in front of him."If everyone only came and filled up once, instead of coming several times and selling it in Kirkuk and Mosul, there wouldn't be a crisis.""This is a crisis that the people have created, not the government."In Arbil, some say they are angry with the regional government for failing to set aside reserves to forestall such a crisis.Many also direct their anger at the federal government in Baghdad, accusing it of withholding petrol from elsewhere in the country.But Osgood said without the Baiji refinery, there simply is not enough petrol to go around."There's no plan B in terms of supply within Iraq," he said."Even before this crisis, Iraq was a net importer of gasoline."Neighbouring Turkey has offered to send petrol to Kurdistan but it would cost double the subsidised 500-dinar rate even at wholesale prices, Osgood said.Another alternative is to bring petrol in from Tajikistan, Turkmenistan and Azerbaijan, but setting up those supply chains will take time."This problem isn't going away anytime soon," Osgood said.

 


AFP




  MENA News Headlines
 Sep 27 2016 - Daimler Trucks presents Fuso eCanter and Mercedes-Benz Urban eTruck at 2016 IAAMENAFN Press
(MENAFN Press) World premiere: the all-electric and networked Mercedes-Benz Urban eTruck • Electric truck with the performance of a diesel engine • Innovative design with flowing lines The ...

 Sep 27 2016 - GCC participants enrich the character of Juha in Narrator’s Café at 16th Sharjah International Narrators ForumMENAFN Press
(MENAFN Press) A wide range of participants from Oman, Qatar, Saudi Arabia, Kuwait and the UAE have enriched the contemporary personality of Juha, a folk storyteller persona, during the evening ...

 Sep 27 2016 - California Mesothelioma Victims Center Now Offers a PowerEnergy Worker with Mesothelioma in California Better Options When It Comes to Attorneys with The Goal Better CompensationMENAFN Press
(MENAFN Press) California Mesothelioma Victims Center Now Offers a Power/Energy Worker with Mesothelioma in California Better Options When It Comes to Attorneys with The Goal Better Compensation ...

 Sep 27 2016 - SE UMCC doubled the value of its assetsMENAFN Press
(MENAFN Press) SE UMCC doubled the value of its assets The value of assets of the two companies more than doubled since 2014, reaching UAH 1.7 billion KIEV, UKRAINE, September 20, 2016 ...

 Sep 27 2016 - AnyFlip Flipbook Software Ranked Higher in Digital PublishingMENAFN Press
(MENAFN Press) AnyFlip Flipbook Software Ranked Higher in Digital Publishing AnyFlip won the support of marketers, bloggers and businesses that create attractive flipbooks for online ...

 Sep 27 2016 - foodpanda Malaysia launches World Food Tour campaignMENAFN Press
(MENAFN Press) foodpanda Malaysia launches World Food Tour campaign Celebration to the many cuisines available on the food delivery platform This campaign not only gives our customers a chance ...

 Sep 27 2016 - Satellite Broadband Communication in Public Safety Market Report 2016 - 2021MENAFN Press
(MENAFN Press) Satellite Broadband Communication in Public Safety Market Report 2016 - 2021 PUNE, INDIA, September 27, 2016 /EINPresswire.com/ -- Sales, means the sales volume of Satellite ...

 Sep 27 2016 - Solder: Consumption, Demand, Sales, Competitor and Forecast 2016 2021MENAFN Press
(MENAFN Press) Solder: Consumption, Demand, Sales, Competitor and Forecast 2016 – 2021 Solder Global Market 2016 Analysis and Forecast to 2021 PUNE, INDIA, September 27, 2016 /EINPresswire.com/ ...

 Sep 27 2016 - BriskBard 1.2 Released With New Security FeaturesMENAFN Press
(MENAFN Press) BriskBard 1.2 Released With New Security Features BriskBard's web browser BriskBard's email client BriskBard's logo The latest version of BriskBard has been released with ...

 Sep 27 2016 - Watch Your Mind Maps in Style with Mind Vector For Apple WatchMENAFN Press
(MENAFN Press) Watch Your Mind Maps in Style with Mind Vector For Apple Watch Mind Vector, the No. 1 choice of 1 Million + users worldwide is now available on the Apple Watch. Use the app on ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help