Regulating Subsidies of fuel to Rationalize Consumption

Hayder Al-Khafaji

The paper proposes alternative policies, such as lifting the fuel subsidy without harming the poor or lower-middle-class, which would help reduce consumption and smuggling, leading to reduced imports and state losses due to unregulated subsidies, saving more than 7 trillion Iraqi dinars annually. The funds saved can be invested in building a refinery of the same size as the Karbala refinery, capable of meeting local demand and exporting the surplus at the global price, resulting in significant economic benefits and job opportunities.

Click here to get the report.