Overview

Liquid Petroleum Gas (LPG) remains a problem with prices still high but not rising. Additional internal production plus importation has helped to stem prices. Yesterday another 10,000 x 12kg bottles were imported from Kuwait plus a number of bulk tankers. Baghdad received an additional supply today of 15 trailer containing 650 x 12kg cylinders per trailer as part of the import intervention programme. Tomorrow 40 trailers carrying bulk gas plus 20 tanker carrying gasoline are expected to cross the Turkish border bound for Mosul.

Supplies of TEL & TML a chemical additive used in the production process of gasoline have been imported. The Basra Refinery has stepped up its production of gasoline to 900,000 cubic metres and its diesel to around 2,000,000 cubic metres daily. This is considered suitable to meet the demands of the Basra dependency.

The Baiji Refinery is running at ½ capacity producing diesel and gasoline from the Kirkuk terminal

Work has begun on recruiting an Armed Oil Police to provide the necessary security to allow the oil workers to carry out an assessment of the Nasiriyah pipeline with the aim to open this up to supply that area direct. Concurrent work is being undertaken by the Southern Oil Company (SOC) to open the Strategic North / South Pipeline. These repairs are expected to take 3 weeks.

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

The Oil for Food programme orphan contracts are being addressed by a joint UNJLC and UNOPS team. It is hoped to work a test case, soon, to smooth out a system. Contact has been made with the Iraqi Oil Company and it is hoped to establish with them that there is still a requirement for the equipment and then a priority of requirement.

POL Prices Gasoline supplies appear to improving around the country. Gasoline Price guide 50ID to 90ID per litre. Diesel remains available in most areas. Price guide 15ID to 20ID per litre
LPG through the intervention programme has improved the situation but the price remains high at 5000ID

Exchange rates: $1 to 1400ID

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ABOUT UNJLC
UNJLC is an inter-agency facility reporting to the Humanitarian Coordinator for Iraq and generally to the Inter Agency Standing Committee. Its mandate is to coordinate and optimise logistics capabilities of humanitarian organisations in large scale emergencies. UNJLC operates under the custodianship of WFP that is responsible for the administrative and financial management of the unit. UNJLC is funded from voluntary contributions that are channeled through WFP. The UNJLC project document for Iraq can be viewed at the UNJLC website (www.unjlc.org).