Iraq’s decision to stop importing petroleum derivatives will bring major economic benefits, according to Mudhhir Mohammed Saleh, financial advisor to Prime Minister Mohammed Shia al-Sudani.
Additionally, the government halted gasoline, diesel, and kerosene imports after domestic production exceeded national demand. The move is part of a wider strategy to reduce reliance on imports and increase refined output to 40% of crude exports by 2030. Officials project nearly $10 billion in annual savings.
Saleh said that the decision of Iraq fuel import halt strengthens the government’s import-substitution policy. It saves more than $7 billion each year and improves Iraq’s current account balance. He added that the shift also boosts the contribution of refined oil products to GDP by nearly 3%. The number is expected to rise as new refineries, especially in southern Iraq, come online.
Furthermore, the strategy reflects Iraq’s ongoing energy independence plan. Over the past three years, the government has expanded refining capacity through major projects. Among them is the North Refineries complex in Baiji, which was rebuilt after ISIS-era destruction and now operates at around 380,000 barrels per day.
Additionally, analysts say the Iraq fuel import halt signals a turning point for the country’s energy sector. Domestic production now meets national demand, reducing the need for foreign imports. The policy is expected to improve Iraq’s fiscal stability, strengthen the local oil industry, and encourage future investments in refining and distribution.
Therefore, the government also emphasizes that surplus refined products will be directed toward exports once domestic needs are met. This approach could further increase foreign currency revenues and reinforce Iraq’s position in regional energy markets.
Overall, the Iraq fuel import halt highlights the success of current energy policies. Officials and analysts view it as a milestone for Iraq’s energy independence, fiscal management, and long-term economic growth.