Iraq cabinet approves oil pricing, customs and subsidy measures

BAGHDAD, Iraq — Iraq's Council of Ministers, chaired by Prime Minister Mohammed Shia' al-Sudani, approved a package of decisions covering oil, customs, tax, electricity and election files. The cabinet set the pricing basis for crude oil purchases, deciding to apply the lower of either the selling price or the budget price, with a 30 percent annual discount rate, effective 1 September 2026. Under the same date, the cabinet endorsed work to remove subsidies on petroleum products across all sectors except gasoline, kerosene, diesel and liquefied gas. It also authorized crude oil exports through three-month contracts with local and international companies across multiple export points. On imports, customs duties and tax guarantees will be collected in advance beginning 1 October 2026. Importers will deposit external transfer amounts with authorized banks, with payments transferred to Ministry of Finance and Treasury accounts within 15 days after duties are paid through the ASYCUDA system. Additional approvals included allowing the election commission to continue using school buildings through 31 December 2027, continuing payments to Basra Gas Company, a five-billion-dinar allocation from the Oil Ministry to the Health Ministry, and a 15-billion-dinar transfer through the Air Navigation Company to the Finance Ministry for border crossings.