Gasoline Price in Iraq — Estimated Pump Price Today

Iraq keeps fuel taxes moderate but imports most refined product, so freight, currency and import parity pricing all matter alongside the crude benchmark.

Because the pump price is set administratively, a change in Brent does not pass through to petrol buyers immediately. It shows up later, either in a scheduled price review or in the size of the state subsidy bill.

Iraq is OPEC's second-largest producer, with vast reserves centered on the southern Basra fields and the Kirkuk area. Export revenue is Brent-linked and central to the national budget, despite internal pipeline challenges.

A barrel of Brent contains 158.987 litres, but a refinery does not turn one barrel into 158.987 litres of gasoline. Yields differ by crude grade and refinery configuration, and the remaining volume becomes other products — diesel, jet fuel and fuel oil. What the crude price sets is the input cost floor, not the pump price itself.

At a Brent price of $74.32 per barrel, the raw crude component works out at about $0.467 per litre. Everything above that in Iraq — and everything the government absorbs below the cost line — is refining, logistics, retail margin and tax.

Track the underlying benchmark on our live Brent crude price page, or compare it against the US benchmark on Brent vs WTI.

Brent sets the input cost, but gasoline is its own product with its own refining route, its own quality spec and its own demand cycle. Those three things explain most of the gap between the crude price and what drivers in Iraq pay.

Gasoline is made from the light end of the barrel. Straight-run naphtha is upgraded in a catalytic reformer, then blended with cracked gasoline, alkylate and isomerate until the mix hits its octane target. A simple hydroskimming refinery yields roughly 20–25% gasoline from a barrel of Brent-type crude; a complex refinery running a catalytic cracker can push that above 45% by breaking heavier fractions down into lighter ones. That is why a refinery cannot simply make more gasoline when the price rises — the yield is set by the crude grade and the plant configuration.

Pumps quote RON, the Research Octane Number. 95 RON is the mainstream grade in most markets and 98 RON is the premium grade; the premium usually costs a few percent more because it needs more high-octane blendstock. Octane is a knock-resistance rating, not an energy rating: a higher grade does not contain more energy per litre, it just tolerates more compression before pre-igniting.

In Iraq there is no meaningful summer/winter blend switch, so the seasonal cost step seen in Europe and North America is absent. Instead, gasoline is supplied from regional refining rather than long-haul imports, so freight is a minor component. What dominates instead is the domestic pricing regime: several producers price gasoline well below international parity as a matter of policy, which means the local price says more about fiscal choices than about the Brent benchmark.

Gasoline demand is dominated by passenger cars, so it is a consumer-led, weather-and-holiday-sensitive product. In the northern hemisphere the gasoline crack spread — the margin between crude and finished gasoline — normally firms through the spring and peaks in the summer driving season, then fades in autumn. This is why gasoline can rise while Brent falls, and vice versa: the pump price is the crude price plus a refining margin that has its own separate cycle.

Structurally, gasoline is the first oil product that vehicle efficiency standards and electric vehicles erode, because passenger cars are the easiest segment to electrify. Where that transition is under way, gasoline volumes decline even as total oil demand holds up — which shifts refinery economics toward diesel and jet fuel over time.

Iraq sets pump prices administratively, so the duty figures used in this estimate ($0.22 per litre on gasoline, $0.16 on diesel) describe the intended tax structure rather than what a driver actually pays. Where the administered price sits below full cost recovery, the gap becomes a subsidy — and subsidy programmes almost always treat diesel and gasoline differently, because diesel feeds freight and food logistics while gasoline is mostly private transport.

Without a seasonal blend switch, the local gasoline price mostly follows landed import cost. The northern-hemisphere driving season still reaches this market indirectly, because it pulls cargoes toward higher-priced regions and lifts freight rates on the routes that supply it.