The Iraqi government has approved measures to address electricity supply challenges ahead of the summer season by securing fuel supply for generators and public institutions. The decision was made following a government assessment announced by the Prime Minister's office.
Officials implemented a series of regulations aimed at ensuring uninterrupted operation of service institutions amid increased energy demand during the hot months. This included maintaining the fuel flow necessary for public services.
Basra Gas Company Agreement Renewed
The cabinet also renewed the development agreement with Basra Gas Company, allowing the company to collect its receivables through an in-kind payment mechanism.
This step was highlighted as an important regulation for managing financial obligations in the energy sector and sustaining the company's operations. The decision provided a framework for the continuity of gas production and related financial transactions.
Deferred Fuel Shipments to Ministries
The government amended Decision No. 119 of 2026 to enable the Ministry of Oil to continue supplying fuel, lubricants, and diesel to ministries and state institutions. The practice was linked to a deferred payment system, especially covering service institutions.
This regulation aims to create a flexible model in energy and fuel management to prevent disruptions in public services during the summer. Maintaining the flow required for electricity production and public infrastructure was central to the decisions.
Other Economic Decisions Approved
The cabinet meeting addressed more than just energy issues. The government also approved measures regulating wheat imports.
Additionally, the Ministry of Finance was authorized to complete procedures related to Iraq's participation in the State Enterprises Reform and Governance Arab Coalition in coordination with the World Bank. Thus, energy, food, and institutional reform matters were addressed together during the meeting.
