Engine oil prices have climbed across the Kurdistan Region after shipping disruptions linked to the closure of the Strait of Hormuz.
Traders say imported engine oil now costs much more than before. The price of one carton of imported oil has increased by around $15, creating extra pressure on businesses and vehicle owners.
Importers blame rising transport costs for the increase. In the past, traders shipped one container of engine oil from Bandar Abbas Port for about $5,000. Now, they must use alternative routes through Saudi Arabia, which cost nearly $13,000 per container.
Higher shipping fees have also pushed up production costs. Traders say manufacturers now pay more for raw materials used in oil containers and packaging. Therefore, the price of these materials has jumped from $900 to $2,000.
These increases have created financial pressure for suppliers, mechanics, and drivers. Moreover, Nawzad Sheikh Kamil, Director General of Trade, said authorities have stepped up market inspections. Monitoring teams now check import records and shipping documents more closely.
He warned traders against exploiting the crisis. Any business owner who sells old stock at inflated prices could face legal penalties.
Market instability in Iran has added more pressure. Furthermore, many global oil products depend on materials linked to Iran’s oil sector. As Tehran’s markets face disruptions, suppliers struggle with both lower quantities and weaker product quality.
Business owners have started to worry about shortages. Kaifi Adel, who owns a warehouse, said his stock can only cover demand for about two months.
“If this situation continues, we may need to rely on recycled oil products with lower quality,” he said.
Drivers and service centers already feel the impact of higher prices. Sware Mire, an oil change technician, said service costs have risen sharply in recent weeks.
A regular oil service that once cost 35,000 Iraqi dinars now costs 50,000 dinars. Oil changes for heavy trucks have also become more expensive, rising from 230,000 dinars to 380,000 dinars.
Unless shipping routes reopen soon, traders expect prices to remain high across Kurdistan.
