Foreign Company Exit Creates 4-5 Million Liter Daily Fuel Gap in Iraq

BAGHDAD, Iraq — A foreign company's withdrawal from a southern Iraqi refinery project has created a daily shortfall of 4 to 5 million liters in high-octane gasoline production, Iraq's Ministry of Petroleum said. The company operated the Fluid Catalytic Cracking unit at the Southern Refineries before exiting due to security concerns. The gap coincides with record domestic fuel demand, with daily gasoline consumption reaching 34 million liters during consecutive holidays and religious pilgrimage travel. Consumption peaked at 35 million liters on Wednesday, June 3, 2026. National refineries are producing 30 million liters daily at full capacity. The Petroleum Ministry is drawing from strategic petroleum reserves to cover the shortfall. Prime Minister Ali Falih al-Zaidi has been working since February to restore confidence following rocket and drone attacks that halted foreign oil company operations in the Kirkuk region. A delegation from Erbil and Chief of General Staff attended a high-level security meeting on Wednesday, during which the prime minister ordered full protection of regional oil infrastructure. An executive order paved the way for international oil companies to resume exploration and extraction operations from Friday.