Overview

The LPG, use for cooking purposes, problem has grown steadily due to the under-production of Liquid Petroleum Gas (LPG). Counter measures have been put into action by the coalition involving the importation of large quantities of gasoline and LPG from surrounding countries, whilst the coalition adjusts the production programme to meet the internal demand more satisfactory.

The intervention will impact within 4 days and is expected to last between 30 to 60 days.

However, this is temporary solution while the main problem remains the vast quantities of crude held in the country storage tanks. This issue will have to be addressed at some stage, and exports restarted if the system is to return to some form of normality.

Mr Thamer Abbas Ghadban has been appointed as head of Iraq’s Oil Ministry on an interim basis. He has promised to focus on the provision of gasoline and LPG to the public at affordable prices. He is expected to ratchet up the amount of LPG available within 30 days. A separate advisory team headed by Phillip Carroll, a former chief of Royal Dutch Shell, with Fadhil Othman, with experience in the former State Oil Marketing Organisation, Iraq’s oil exporting company, will work to improve the infrastructure.

Due to the above situation, emergency planning with the aim of setting up a number of key refuelling points in UN locations to cover the agency vehicles, is under consideration. This will be coordinated by UN JLC and will most probably be implemented by UNOPS using a voucher transfer system. The first stage of gathering information on vehicle and generator holdings is currently implemented.

POL PRICES

Gasoline remains in short supply throughout the country. The long lines of vehicles at gas stations are still a factor of daily life but they no longer require police or military control. This has been replaced by garage owner supervision. Smuggled product is openly appearing in the street for sale by jerry can (5 gal). Gasoline Price guide 50ID to 90ID per litre in most places but black market prices are in the region of 150ID to 200ID.

Diesel remains available in most areas. Price guide 15ID to 20ID per litre.

LPG has all but disappeared from the open market. The only price known is the black market price which appears to be around the 6000ID per bottle.

Exchange rates: $1 to 1400ID