Considering that the companies that receive a license in Iraq or intend to obtain a license are obliged to comply with all the conditions, requirements, and specifications determined by the Ministry of Petroleum to maintain the validity of the license granted to them and not be subject to any financial penalty. Many of these companies are facing many problems regarding compliance with the requirements of obtaining a license to import and sell petroleum products.

The law on the import and sale of Iraqi petroleum products aims to meet the needs of Iraqi citizens and Iraqi companies active in the field of petroleum products (such as gasoline, gas, oil, etc.), improve the services provided to them, and the possibility of private companies supporting the Iraqi economy. It has been established due to the great economic impact of oil and the increase in the percentage of human employment in Iraq.

In this article, we will explain the conditions for granting a license to import and sell petroleum products, the disadvantages of the license, its advantages, and the products that have a license to sell in Iraq.

Conditions for granting license to import and sell petroleum products

Iraqi and foreign companies registered in Iraq must comply with the conditions set by the instructions to facilitate the implementation of the provisions of the Law on the Import and Sale of Petroleum Products No. 9 of 2006, which are as follows:

1. The company applying for a license must be registered following Iraqi laws – Companies Law No. 21 of 1997.
2. The capital of the company should not be less than (5) billion Iraqi dinars.
3. This company must have a business in a field similar to petroleum products to prove its technical ability to import and sell petroleum products.
4. The company must have a financial payment certificate from a reliable bank approved by the Central Bank of Iraq to prove its financial ability to carry out importing and selling petroleum products in Iraq.
5. The company must have a special storage warehouse for the preservation and storage of petroleum products, provided that the warehouse complies with the technical specifications and environmental and safety determining factors in warehouses specified by the Ministry of Petroleum. It should be noted that the storage capacity should not be less than the amount of oil product imports for one month.

The company that has received the license can import, store, transport, and sell petroleum products according to the international specifications specified by the ministry, these products are as follows:

(1) Car gasoline, octane at least 91%.

(2) Gas compressor oil.

(3) Engine oil

(4) Gas liquids.

(5) kerosene.

(6) Bitumen.

Iraqi and foreign private sector companies registered according to Iraqi laws in the Companies Registration Office can obtain a license to import and sell petroleum products for a period of six months (renewable) provided they do not violate the requirements, conditions and specifications mentioned in the Import and Sale Law. Petroleum Products No. 9 of 2006 and its instructions.