Iraq’s Oil Refineries: An “Economic Lever” Generating $5 Billion Annually

Iraq’s Oil Refineries Turn the Refining Sector from a Fiscal Burden into a Sustainable Economic Engine

Iraqi Prime Minister’s Advisor, Mudhar Mohammed Saleh, announced that halting the import of petroleum derivatives will save the country approximately $5 billion annually. He explained that this decision is part of Iraq’s structural transformation in oil policy, aimed at achieving self-sufficiency and eventually exporting surplus products after completing the construction of modern refineries and upgrading refining infrastructure.

Saleh described the decision as a “strategic transformation” that reduces dependence on imported gasoline and diesel, while supporting the development of an integrated productive economy linking crude oil extraction with domestic and international marketing. He noted that the move contributes to financial savings through reduced imports and enhanced foreign currency reserves. Additionally, Iraq’s GDP is expected to grow by up to 3% annually due to increased domestic production of petroleum derivatives.

He added that the step introduces a structural shift in the national budget by reducing operational burdens linked to imports and increasing revenues from the sale of domestically produced derivatives. This contributes to diversifying income sources and reducing fiscal deficits. Saleh confirmed that the initiative transforms the refining sector from a “financial burden” into an “economic lever” that finances infrastructure and public service projects, strengthens national financial efficiency, and supports economic sovereignty.

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