Baghdad:Prime Minister Ali Al-Zaidi has introduced significant governmental measures to restructure the pricing of domestically supplied oil, projecting a savings of approximately 20 trillion dinars annually for the public treasury. Additionally, Al-Zaidi is focusing on diversifying export channels for Iraqi oil to counteract the effects of regional instability and potential challenges in the Strait of Hormuz.

According to National Iraqi News Agency, Al-Zaidi shared in a televised interview that the revised domestic oil pricing is expected to generate 80 trillion dinars over the next four years. The previous system, which involved selling one million barrels to the Ministry of Oil at 5,000 dinars per barrel, was criticized by Al-Zaidi as a source of corruption. The government has since initiated actions against individuals involved in corrupt practices related to Ministry of Oil contracts, resulting in several arrests and ongoing audits to ensure compliance and integrity.

Al-Zaidi highlighted that Iraq’s oil exports have been inconsistent due to regional tensions, particularly in the Strait of Hormuz, which have prevented the nation from capitalizing on rising global oil prices. To address this, the government is advancing plans to develop a new oil pipeline network to reduce reliance on the Strait and is working to reactivate the Ceyhan pipeline route, thereby broadening Iraq’s export options and fortifying its oil sector against crises.

On domestic economic fronts, Al-Zaidi detailed the government’s decision to waive duties and taxes on essential goods to lower their cost. This exemption applies to fruits, vegetables, most food products, medicines, and solar energy equipment. These measures are designed to ease the financial burden on citizens by ensuring essential goods remain affordable, underpinning the government’s commitment to prioritizing the welfare of its people in economic policymaking.