Iraq prolongs fuel export deal with Lebanon for additional year

Iraq’s government has agreed to continue supplying Lebanon’s electricity company with heavy fuel oil for another year, Zawya reports.

Najib Mikati, the Lebanese caretaker Prime Minister, Thursday, said he made the request to Iraqi Prime Minister Mustafa al-Kadhemi, who agreed to extend the agreement signed last year under the same terms.

In July 2021, Baghdad reportedly offered Beirut 1 million tons of heavy fuel oil a year in exchange for services including health care for Iraqi citizens.

The Lebanese government turned to Iraq for fuel to mitigate acute power shortage, which last summer reached crisis levels when the government was unable to subsidize fuel imports.

Cash-strapped Lebanese government removed those subsidies and domestic fuel prices skyrocketed. Power plants also faced fuel shortage. Many homes have been left without state-provided electricity for around 22 hours every day, Reuters reported.