"Oil trucks carrying kerosene from Iran have arrived after agreement between Sulaimaniyah governorate and the city of Kermanshah in Iran in September," said Zana Mohammed Saleh, governor of Sulaimaniyah.

"Today, 13 trucks carrying the first shipment arrived," he said adding each truck was loaded with 30,000 litres (7,925 US gallons) of kerosene.

He said another seven trucks were to arrive in Sulaimaniyah Friday.

Saleh said the agreement between Sulaimaniyah and the Iranian city covered the importation of 30 million litres of kerosene over a three month period to tackle the acute shortage of the fuel in northern Iraq.

He said the Kurdish administration will sell fuel at a subsidised price of 15 dollars for a 200 litre barrel -- or less than a cent a litre -- compared to the cost to the government of 90 dollars.

The agreement with Iran came amid controversy over the independence-minded Kurdish administration's decision to pursue its own oil deals and not depend on Baghdad's shaky central government for approval.