Refinery sector revolts over oil pricing reform

One week after the Cabinet decided to overhaul the economics of the refining sector, workers are protesting, managers are lobbying for alternatives, and the government has delayed implementation.
Iraqi refinery workers protest on Aug. 24, 2026 at the headquarters of the state-run South Refineries Company. (ALI AL-AQILY/Iraq Oil Report)

BASRA - Workers across Iraq's state refining sector have mounted an open revolt against the government's oil sector reforms, with hundreds of employees protesting at several refineries and senior managers urging Baghdad to change the policy.

The reforms were announced on Aug. 18, when the Cabinet decided on several measures designed to pull cash more quickly into a treasury drained by the wartime loss of export revenue. One key measure would put a market-based price on crude sold to state refineries, which for decades have received crude at only a nominal cost.

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