KRG will eliminate tax on gasoline, reducing price at pump: Erbil mayor

A vehicle in a gas station in Sulaimani (NRT Digital Media)

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SULAIMANI — Erbil Mayor Nabaza Abdulhamid said on Monday (July 19) that the government is working to lower gasoline prices across the Kurdistan Region in response to public and political anger over a tax on the fuel.

"We have a plan to provide cheap gasoline at all gas stations," Abdulhamid told NRT.

"The reason for the price drop is that the tax imposed on importing gasoline will be removed,” he added.

The price of normal grade gas rose in the winter from 500 Iraqi dinars ($0.34) per liter to 750 Iraqi dinars ($0.51), prompting outrage from motorists and taxi drivers.

Suppliers said that the increase was a result of the devaluation of the Iraqi dinar by the federal government, while the New Generation Movement argued that consumers were also being burdened with onerous taxes by the Kurdistan Regional Government (KRG) at the behest of the Patriotic Union of Kurdistan (PUK) and Kurdistan Democratic Party (PUK).

Last month, the Movement began distributing discounted gas from a pump in Sulaimani city for the, resulting in long queues and some gas stations across Sulaimani governorate lowering their prices in an effort to compete.

(NRT Digital Media