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Iraq Importing Oil, forced to triple Prices
Iraq, the THIRD largest oil reserve in the World is importing Oil???????????
It's been forced to triple prices recently?
See the video at www.cbsnews.com
Iraq Oil Min Threatens To Resign If Fuel Hike Remains
BAGHDAD -(Dow Jones)- Iraq's oil minister said Monday that he would resign if the government doesn't overturn Sunday's decision to hike fuel prices five to nine times.
The cabinet's decision to hike gasoline prices immediately to stem the growing black market prompted demonstrations in Iraq.
"Dr Ibrahim Bahr al-Uloum will tender his resignation to the government, if the government doesn't change its decision on the fuel prices," the minister told reporters in Baghdad.
Bahr al-Uloum said the government should stick to its decision in October, when it decided to implement a two- to three-fold hike in gasoline prices from Dec. 31.
The cabinet approved increasing the price of imported and super gasoline to 250 Iraqi dinars (17 cents) a liter from IQD50, as well as that of regular, locally-produced gasoline to IQD150 from IQD20.
Gasoil was raised to IQD90 a liter from IQD10, Kerosene to IQD25 from IQD5, and a cooking gas cylinder to IQD600 from IQD200.
Bahr al-Uloum said he continued to back a gradual increase in fuel prices, but said he had made his displeasure known at the cabinet meeting that approved Sunday's hike.
Earlier this year, the Iraqi cabinet had rejected a proposal by Finance Minister Ali Abdulameer Allawi to raise fuel prices ten-fold.
Iraq has suffered from an acute shortage of oil products since the U.S.-led invasion in 2003.
Up to 2 million liters of gasoline are smuggled out of the country every day.
In order to meet growing shortages, the government is importing around $3 billion worth of oil products every year from countries like Turkey, Kuwait, Iran and Syria.
The current government has continued ousted President Saddam Hussein's practice of subsidizing gasoline, and other oil products, keeping the price at the pump for a gallon of gasoline at a paltry 6 U.S. cents.
The subsidies, which artificially produced some of the lowest gasoline and heating fuel prices in the world, have been singled out by financial institutions both inside and outside Iraq as a crippling burden when the country is trying to create a free-market economy.
It's been forced to triple prices recently?
See the video at www.cbsnews.com
Iraq Oil Min Threatens To Resign If Fuel Hike Remains
BAGHDAD -(Dow Jones)- Iraq's oil minister said Monday that he would resign if the government doesn't overturn Sunday's decision to hike fuel prices five to nine times.
The cabinet's decision to hike gasoline prices immediately to stem the growing black market prompted demonstrations in Iraq.
"Dr Ibrahim Bahr al-Uloum will tender his resignation to the government, if the government doesn't change its decision on the fuel prices," the minister told reporters in Baghdad.
Bahr al-Uloum said the government should stick to its decision in October, when it decided to implement a two- to three-fold hike in gasoline prices from Dec. 31.
The cabinet approved increasing the price of imported and super gasoline to 250 Iraqi dinars (17 cents) a liter from IQD50, as well as that of regular, locally-produced gasoline to IQD150 from IQD20.
Gasoil was raised to IQD90 a liter from IQD10, Kerosene to IQD25 from IQD5, and a cooking gas cylinder to IQD600 from IQD200.
Bahr al-Uloum said he continued to back a gradual increase in fuel prices, but said he had made his displeasure known at the cabinet meeting that approved Sunday's hike.
Earlier this year, the Iraqi cabinet had rejected a proposal by Finance Minister Ali Abdulameer Allawi to raise fuel prices ten-fold.
Iraq has suffered from an acute shortage of oil products since the U.S.-led invasion in 2003.
Up to 2 million liters of gasoline are smuggled out of the country every day.
In order to meet growing shortages, the government is importing around $3 billion worth of oil products every year from countries like Turkey, Kuwait, Iran and Syria.
The current government has continued ousted President Saddam Hussein's practice of subsidizing gasoline, and other oil products, keeping the price at the pump for a gallon of gasoline at a paltry 6 U.S. cents.
The subsidies, which artificially produced some of the lowest gasoline and heating fuel prices in the world, have been singled out by financial institutions both inside and outside Iraq as a crippling burden when the country is trying to create a free-market economy.
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