Fri Jan 26, 7:46 AM ET
Prime Minister Nuri al-Maliki has urged the oil ministry to hike crude output and refining capacities in order to tackle an acute shortage of petroleum products in the country.
Maliki met Oil Minister Hussein Shahristani and discussed the issue of shortage of oil as well as petroleum products, a statement from the prime minister's office said.
"The two discussed acceleration of oil production and building of new refineries," the statement said, adding that shortage of refined petroleum products was prompting heavy imports from neighbouring countries.
Iraq's oil pipelines are regularly hit by insurgent attacks, affecting the country's crude production.
Given the shortage of fuel products, long queues at petrol stations are a daily sight in Iraq and they often end up as targets for bomb attacks.
The strife-torn country currently produces around two million barrels of oil per day, down from 3.5 million before the March 2003 US-led invasion.
Iraq's cabinet and parliament are soon expected to clear a new oil law that encourages foreign investment in the sector and quick signing of production contracts with international companies.