12 Hrs
Source:
وكالة بغداد اليوم الاخبارية
Expert highlights problem with new oil pricing model
The report indicates that the new pricing model for domestically consumed crude oil in Iraq is based on determining the refining cost of oil to be between $7 and $7.7 per barrel, with approximately 7,000 Iraqi Dinars allocated to cover refining expenses. According to this model, Iraqi refineries achieve a profit margin of around 2,700 Dinars. Additionally, transportation, refining, and processed oil costs are paid by the General Company for Petroleum Products Distribution at a rate of about 60,000 Dinars per barrel, within a global price estimated at $65 after a 30% discount. However, this model faces a key challenge: the burden of covering all operational and investment expenses of the oil companies falls on the state’s general budget, despite the profits made by the Distribution Company from selling petroleum derivatives at subsidized and international prices.
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