Iraqi Kurdistan has long been a key supplier of gasoil to Afghanistan, with Oil Load Group playing a significant role in delivering high-quality fuel to the Afghan market. As one of the most recognized brands in Afghanistan’s fuel sector, Oil Load Group has consistently met the country’s demand for reliable and competitively priced gasoil.
A Longstanding Supply Chain in Transition
Over the years, the transit of gasoil from Iraqi Kurdistan to Afghanistan followed a well-established routine. A memorandum of understanding (MoU) allowed for the direct transit of Iraqi Kurdistan fuel through Iranian territory to Afghanistan. This agreement was renewed semi-annually, typically with a one- to two-month pause during which Oil Load Group leveraged alternative supply routes to maintain its commitments.
One such alternative involved transporting fuel from Oil Load Group’s storage facilities in Sulaymaniyah and Erbil. The fuel was transported by Iranian vehicles to the Sarakhs border (Iran-Turkmenistan) and subsequently delivered to Afghanistan via transshipment at the Aqina or Turghundi borders.
Timeline of the Disruption
July 1, 2024: Fuel tankers were halted at the Mil-78 border (Iran-Afghanistan) and Abu Nasr-e-Farahi customs. Over 500 tankers were stranded at these locations without resolution.
September 11, 2024: Additional closures occurred at key borders, including Milak and Dogharun (Islam Qala), further restricting the movement of Iraqi Kurdistan tankers. The expiration of the direct transit agreement dashed hopes of reopening these routes.
October-November 2024: All gasoil commitments to Afghanistan were redirected through Turkmenistan using transshipment as an alternative route.
December 7, 2024: New customs orders made transit through Turkmenistan impossible, severing the supply chain entirely.
The Fallout of the Supply Cut-Off
By the end of 2024, the once-reliable flow of gasoil from Iraqi Kurdistan had come to a complete halt. The gasoil supplied by Oil Load Group had been a cornerstone of Afghanistan’s fuel market, prized for its high quality and competitive pricing compared to alternatives from Iran, Turkmenistan, and Russia. This pricing advantage helped regulate Afghanistan’s fuel market and mitigate volatility.
The abrupt cessation of Iraqi Kurdistan gasoil imports raises pressing questions about how this supply will be replaced and what economic ripple effects will ensue. The disruption poses significant challenges for Afghanistan, potentially increasing fuel costs and creating shortages that could impact various sectors of the economy.
Looking Ahead
The interruption of Iraqi Kurdistan’s gasoil supply underscores the need for a diversified and resilient fuel supply chain for Afghanistan. Future articles will explore the policies that led to this disruption, as well as potential alternative sources and strategies to stabilize the market.
Stay informed with Oil Load for in-depth analysis and updates on the evolving energy landscape in Afghanistan.
