Wed Sep 6, 8:22 AM ET
Iraq's parliament has passed a law opening the way for private companies to import and distribute petroleum products, in a move that could end the country's severe fuel shortage.
The new law liberalises import, distribution and retail activities in the oil sector, which was hitherto entirely government-run.
Despite Iraq's massive oil reserves, among the largest in the world, the country suffers from a severe shortage of refined products, including gasoline, and motorists often wait for hours at petrol stations.
According to Oil Minister Hussein Shahristani, Iraq produces 10 million liters (2.6 million gallons) of petrol and imports another seven million liters (1.8 million gallons) per day, while daily demand is 22 million liters (5.8 million gallons).
The hope is that by involving private sector in importing, supplies will increase.