Summary
Content
UNJLC / IRAQ, WEEKLY REPORT - FUEL PLANNING TEAM- FUEL SITREP, 27 JANUARY 2004
Content:
Distribution and Availability
At present, availability of fuel products throughout Iraq is generally good. Gasoline (benzene) is available at most service stations with a limited black market. The long queues common in December are no longer evident.
Gas oil (Diesel) is available but less so than benzene. Heavy vehicles generally refuel at service stations at the official price of between ID10 and ID13 per litre, whilst light passenger diesel vehicles obtain supplies through the black market with a price of around 100 ID /liter[1]).
Good weather has significantly reduced the seasonal demand for kerosene, although not sufficiently to eliminate the black market. This fuel is generally available for about ID100/ liter, against the official price of ID5 to ID8.
Late January witnessed a sharp decrease in the prices for LPG cooking gas from ID 2000 to ID1000 per bottle vs. the official price of ID250. This appears to be a result of the combination effects of resumed production from South Gas Company at about 1000ton/day, representing ¼ of the aggregate national demand; uninterrupted operation of the 14-inch LPG north-south pipeline, facilitating efficient LPG distribution to the most populous governorates; and continued high levels on imports.
Refineries
Production levels were stable in the country’s three major refineries during the second half of January. The resultant higher level of uninterrupted supplies has helped stabilize the domestic fuel market, reducing the effect of panic buying and hoarding. Baiji Refinery, the country’s largest, operated at an estimated 85% of capacity; Baghdad’s Daura Refinery is thought to have worked at full capacity; and Basra at 75% of capacity. Combined, these refineries process around 350,000-400,000 bpd of crude oil into refined products, out of the 600,000 bpd domestic requirement. Smaller refineries throughout the country may be processing up to a further 100,000 bpd.
Imports /Exports
The Coalition and Ministry of Oil are continuing to import significant quantities of fuel to meet domestic demand. At present, 30 to 40% of overall fuel requirements are imported. The Mina Al-Basra (formally Mina Al-Bakir) offshore terminal continues to export crude oil in quantities in excess of 1.5 million bpd. Fuel oil (FO) is exported from the southern port of Khor Zubayr terminal. Export through the Iraqi - Turkey pipeline to the Ceyhan terminal on the Mediterranean remain suspended, although there are trucked exports of crude and heavy fuel oil into Turkey and possibly Jordan.
(1) Figures for black market prices in Iraq are round figures. Details for each region are published in JLC’s monthly fuel report.