Hidden billion-dollar fuel scheme uncovered in Iraq's asphalt industry
Large-scale fuel-oil network operates through Iraqi asphalt plants moving millions of barrels monthly. Complex operation involves multiple countries and generates massive profits through subsidized prices
A huge fuel-oil operation running through Iraqi asphalt plants has grown since late-22‚ when Mohammed Shia al-Sudani became PM (moving around 3.4 to 5 million oil barrels monthly)
The scheme uses govt-subsidized fuel meant for asphalt production: creating a network that spreads across Iraq Iran and Gulf states. Many fake-plants got licenses while others over-report their needs to get extra fuel-oil allocations
The operation has two main paths:
- Iraqi fuel gets mixed with Iranian product
- Direct exports with fake papers showing different products
- Both routes use modified documentation
- Most shipments go to Asian markets
Qais al-Khazali leads the militia group AAH thats central to this plan; his organization (which got folded into Iraqs security system back in 18) has strong ties with Irans Revolutionary Guards. The State Mining Company became a key player - running joint-ventures with private firms and managing fuel-oil storage sites
I was personally hurt it took them so long to sanction me
The price of subsidized fuel changed several times: dropping to $100-150 per ton in early-23; then going up to $369 in mid-24; now its between $228-268. Experts think this brings in at least $1B yearly; though some say its more like $3B
The southern city of Basra became the main spot for mixing fuels: with Khor Al Zubair and Umm Qasr working as key shipping points. Iraqi engineers do the mixing during ship-to-ship moves - its hard to prove later that any blending happened because Iranian and Iraqi fuels are similar
