Economist Nabil Al-Marsoumi revealed today, Saturday, details of the new economic model adopted for pricing crude oil intended for domestic consumption, based on a recent study prepared by the Economic Department at the Ministry of Oil.
Al-Marsoumi stated in a post reviewed by the "Video News Agency" that the rate of crude oil refining fees ranges from 7 to 7.7 dollars (with an average of 9,700 dinars per barrel), of which about 7,000 dinars are allocated to cover refining costs, while the remaining 2,700 dinars represent the profit margin for Iraqi refineries.
He confirmed that the incentives and profits of refineries will not be affected by this change, while the General Company for Oil Products Distribution is responsible for covering transportation costs, refining fees, and the supplied crude oil price at 45.5 dollars per barrel (about 60,000 dinars), assuming a global price of 65 dollars after a 30% discount.
The issue of domestic oil pricing and the restructuring of refining and distribution costs is one of the main topics closely monitored by specialists in the economic field, as the main problem lies in the necessity for the state budget to continue bearing all operational and investment expenses of oil companies, despite the profits achieved by the distribution company from selling petroleum derivatives at both supported and global prices.