ERBIL, Kurdistan Region of Iraq - The Kurdistan Regional Government (KRG) held a high-level meeting on Sunday to tackle fuel shortages and rising gasoline prices, with officials working to resolve the issue “as soon as possible,” said spokesperson Peshawa Hawramani.

"The meeting is to find a root solution to the fuel problem, and the issue will be resolved as soon as possible,” KRG spokesperson Hawramani told The New Region in a phone call.

He added that the government is working to “facilitate the import of the materials used in producing improved and super grade petrol,” which have become scarce and more expensive because of the ongoing regional conflict.

Gasoline prices have risen across the Kurdistan Region amid the renewed regional conflict, driven by shortages and higher costs of materials needed to produce “Improved” and “Super” fuel, resulting in reduced supply and higher prices at filling stations.

Sunday's meeting was held to implement a decision made during Wednesday's KRG cabinet session to reduce fuel prices and increase supply to meet domestic demand. It included ministers, governors, district administrators, representatives of the council overseeing petrol stations, and other relevant parties.

The New Region understands that several proposals and directives have been prepared ahead of a final decision to resolve fuel shortages and long queues at petrol stations in the coming days, while ensuring the government's price reduction policy is implemented without causing losses to station operators.

Under Wednesday's cabinet decision, the natural resources ministry was directed to “provide necessary facilities in this regard to provide more fuel and prevent any measures that cause a burden on citizens,” while relevant authorities were instructed to “closely monitor” petrol stations to ensure compliance with official prices, according to a government statement.

The KRG has also authorized increased fuel imports and higher production to ensure demand is met while standardizing prices across the Region in an effort to end a years-long pricing crisis.

Petrol stations in the Kurdistan Region sell three grades of gasoline: “Normal,” the standard grade, along with higher-octane “Improved” and “Super” fuel. Some government-affiliated stations also sell subsidized “Normal” fuel.

Under the latest directive, “Normal” gasoline must be sold for a maximum of 850 Iraqi dinars per liter, “Improved” fuel for 1,000 dinars, and “Super” fuel for 1,200 dinars. Subsidized “Normal” gasoline will remain priced at 750 dinars per liter.

Before the directive took effect, a liter of commercial “Normal” fuel had risen to as much as 1,220 Iraqi dinars - higher than the newly capped price for premium-grade gasoline.

All fuel grades are also required to meet KRG quality standards. Besides damaging vehicles, poor-quality fuel has been one of the factors contributing to worsening pollution across the Kurdistan Region and Iraq.

Fuel prices in the Kurdistan Region have steadily increased since 2016, when exporting countries began raising prices following a prolonged period of historically low global crude oil prices.

Recent regional tensions have further pushed up prices after Iran closed the Strait of Hormuz - a strategic waterway through which roughly 20 percent of the world's oil passes - during its conflict with the United States and Israel.