New pricing rules trigger Iraqi oil demonstrations

Shafaq News- Baghdad/ Basra

Iraqi oil workers protested in Baghdad and several provinces on Monday against new government rules for pricing crude oil, warning the changes could hurt refinery companies, weaken domestic refining capacity and increase Iraq's reliance on imported fuel.

Imad al-Qatrani, a representative of the protesters, told Shafaq News that a cabinet decision adopted on Aug. 18 requires refineries to buy crude at the lower of the price set by Iraq's state oil marketing company, SOMO, or the price established in the state budget, after a 30% annual deduction.

Arguing that the decision conflicts with Iraq's 1997 oil companies law, which allows companies to retain part of their revenues to cover operating costs, develop facilities and pay workers, he called the new pricing mechanism unfair and stressed it could weaken profitable refining companies that rely on their own revenues to fund their operations.

Oil workers in Baghdad also protested proposed salary deductions, while similar demonstrations took place at the Karbala Refinery and among oil workers in Kirkuk province.

The Iraqi government had previously outlined plans to use savings from the 30% deduction to increase state revenues and maximize returns from crude oil. It is also seeking to expand export capacity and diversify routes for Iraqi oil shipments after the closure of the Strait of Hormuz sharply affected the country's oil trade.

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