By Dr. Pshtiwan Faraj  

A former member of the Kurdistan Parliament has launched a sharp criticism of the Kurdistan Regional Government's (KRG) oil and fuel policies, alleging that around 100 million barrels of oil were sold over a 30-month period without any of the proceeds reaching the Kurdistan Region's Ministry of Finance.

The allegations, made by Omar Gulpi, a former MP from the Justice Society (Komal), have reignited one of the Kurdistan Region's most politically sensitive debates: the transparency of oil revenues, public finances, and fuel pricing.

His comments come as the KRG continues to face fiscal pressures following the suspension of pipeline exports through Turkey in 2023, a crisis that fundamentally reshaped the region's oil economy. While government officials have argued that declining production and export constraints have contributed to persistent fuel shortages and high prices, Gulpi contends that the figures tell a different story.

Although his claims have generated significant political attention, they represent allegations made by an opposition figure and have not been independently verified or officially confirmed by the KRG.

The Core Allegation

According to Gulpi, the government has repeatedly argued that reduced oil availability—particularly a shortfall of around 50,000 barrels per day—has contributed to elevated fuel prices across the Kurdistan Region.

He rejects that explanation.

Gulpi argues that between March 2023, when pipeline exports through Turkey were suspended, and September 2025, approximately 220,000 barrels of oil per day remained available for sale.

Based on those figures, he estimates that roughly 100 million barrels were sold during the 30-month period.

His central question is straightforward:

If that volume of oil was sold, where did the revenue go?

Fuel Prices Remain High

Beyond the issue of oil revenues, Gulpi also challenged the government's explanation for fuel prices.

He noted that despite continued domestic oil production during the export crisis, gasoline prices remained around 450 Iraqi dinars per liter, contradicting expectations that surplus crude would lower domestic fuel costs.

His criticism reflects a broader public concern that Kurdistan's status as an oil-producing region has not translated into lower fuel prices for ordinary citizens.

This issue has become increasingly politically sensitive as households continue to face rising living costs and periodic salary delays.

Revenue Transparency Under Scrutiny

Perhaps Gulpi's strongest allegation concerns public finances.

He claims that none of the revenue generated from the reported 100 million barrels of oil entered the Kurdistan Regional Government's Ministry of Finance.

If proven, such a claim would raise profound questions regarding:

• Revenue collection.
• Budget transparency.
• Public financial management.
• Oversight of oil marketing.
• Institutional accountability.

However, the KRG has consistently maintained that the suspension of official pipeline exports, legal disputes, production-sharing contracts, and broader fiscal challenges have significantly affected the region's finances.

No official audit has publicly substantiated Gulpi's specific allegations.

The Politics of Oil

Oil has long been the foundation of the Kurdistan Region's economy—and its most politically contested resource.

For years, disputes over:

• Export rights.
• Revenue sharing.
• Contracts with international oil companies.
• Relations with Baghdad.

have dominated Kurdish politics.

Since pipeline exports through Turkey were halted following international arbitration, the KRG has increasingly relied on alternative marketing arrangements and domestic sales while negotiating with Baghdad over the future of exports.

These developments have intensified demands from opposition parties for greater transparency regarding how oil is sold and how revenues are managed.

Public Trust and Economic Challenges

The controversy extends beyond political rhetoric.

Public confidence in the management of natural resources has become an increasingly important issue as the Kurdistan Region faces:

• Fiscal deficits.
• Public-sector salary disputes.
• Reduced investment.
• High fuel prices.
• Economic uncertainty.

For many residents, transparency over oil revenues is closely linked to broader questions of governance and economic reform.

Without greater public disclosure, debates over oil income are likely to remain central to Kurdish politics.

Future Implications

The allegations made by Omar Gulpi are likely to intensify pressure on the Kurdistan Regional Government to provide more detailed information about oil production, domestic sales, and revenue allocation.

If opposition parties continue demanding greater financial transparency, the issue could become a major subject of parliamentary debate and feature prominently in future political negotiations between the KDP, PUK, and opposition movements.

The controversy may also influence Erbil's relationship with Baghdad. As discussions continue over restoring pipeline exports and implementing new energy agreements, questions surrounding financial accountability could become increasingly important in negotiations with the federal government.

For international investors and oil companies operating in the Kurdistan Region, sustained disputes over revenue management may reinforce calls for stronger governance and clearer reporting standards. Transparency is becoming an increasingly significant factor in attracting long-term energy investment.

Ultimately, the debate is no longer only about 100 million barrels of oil. It reflects a broader struggle over how the Kurdistan Region manages its most valuable natural resource, balances public expectations, and builds confidence in its fiscal institutions during a period of prolonged economic uncertainty.

#Kurdistan #Oil #KRG #Economy #Geopolitics