Baghdad: A fuel shortage in the Iraqi capital of Baghdad has led to long lines outside stations as supplies dropped in oil rich Iraq due to import disruptions caused by the war between the US and Iran. Despite being Opec’s second largest oil producer, Iraq imports oil derivatives because its refineries do not produce enough gasoline to meet domestic demand.

In recent weeks, as regional hostilities drag on, long queues have been reappearing every few days, especially outside government run fuel stations in Baghdad and other provinces. Iraq’s oil ministry said Friday that overcrowding at fuel stations is caused by a gap between production and consumption, rejecting rumors that the shortages are linked to the country’s refining and fuel distribution model.

The ministry said refineries are operating at full capacity to meet fuel demand and urged citizens “not to listen to rumours” linking the overcrowding to “the economic model of the refining and distribution sectors.”

The renewed regional conflict and higher costs of materials needed to produce higher quality fuel have reduced supplies at fuel stations across Iraq and the Kurdistan Region.

“The Ministry of Oil wishes to clarify to the public that the overcrowding at fuel stations is caused by a negative gap between production and consumption,” it said in a statement.

The oil ministry said yesterday that “regional events and the ongoing conflict are causing logistical challenges to tanker traffic, delaying their arrival at Iraqi ports”.