ERBIL, Kurdistan Region of Iraq – Erbil launched a trial phase of using electronic cards to ration subsidized fuel on Monday, giving 40 liters to each vehicle, as the Kurdistan Regional Government (KRG) seeks to overhaul petrol prices amid a shortage.

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.

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 stations.

Erbil’s oil and minerals directorate shared a video on social media showing drivers at a gas station having their cards scanned by an employee before driving in, announcing the launch of rationing subsidized fuel using electronic cards.

A day earlier, the directorate said that each vehicle would now receive 40 liters of the subsidized fuel per day, which is the cheapest option at 750 Iraqi dinars.

Under the KRG cabinet's 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.

A source from the natural resources ministry told The New Region on Sunday that a high-level meeting is scheduled for Monday to review proposals to adjust fuel prices proportionate to the cost of importing materials used to produce Improved and Super gasoline. 

The ministry is assessing potential price adjustments for Improved and Super gasoline to ensure higher costs do not become a burden on the private sector and allow importers to continue importing and selling fuel, the source said.

The proposals include raising the prices of both Improved and Super gasoline by 300 Iraqi dinars per liter, the source explained. Based on the proposal, Super gasoline would rise to 1,500 Iraqi dinars per liter, while Improved gasoline would increase to 1,300 Iraqi dinars per liter.