Soaring Gas Prices Jar Cash-Strapped Iraqis

[Harper_is_Bush]

Subsidies cut, attacks drive prices to more than a dozen times usual rate

BAGHDAD, Jan. 7, 2006 — Adbul Al-Rahman waits in line an entire day to fill his taxi cab with gasoline. Gas shortages and escalating prices are causing many Iraqis to flock to gas stations in droves.

Spending so much time in line means Rahman is unable to work every day. He cannot raise his taxi fare to compensate for lost work days since many Iraqis are poor and cannot afford higher rates. Since gas prices skyrocketed, his income has been cut in half.

Rahman, like many other Iraqis, is waiting for a solution to Iraq's fuel crisis — but a fix is not likely to come anytime soon.

Iraqis long have relied on fuel subsidies, but in recent weeks those credits have been drastically cut. Fuel prices have skyrocketed to 65 cents a gallon from 5 cents a gallon last summer. Prices could reach $1 per gallon later this year.

Why Prices Have Escalated

Iraq, deep in debt, negotiated with creditors to restructure much of what it owes. The International Monetary Fund agreed to forgive 80 percent of the debt provided that Iraq cut gas subsidies. Iraq agreed.

Iraq's oil minister, Bahr Al Uloum, protested the government's decision saying, "It is not proper with the economical situation of the people."

Al Uloum added that price increases would further harm living standards. Top wage earners in Iraq make $130 a month. Twenty-five percent live on just $1 a day.

However, when Al Uloum balked at the government's decision to reduce subsidies, Prime Minister Ibrahim Al-Jaafari replaced him. Ahmed Chalabi, the deputy prime minister and a former U.S. ally, assumed direct control of Iraq's powerful oil ministry this week.

http://abcnews.go.com/International/IraqCoverage/story?id=1481803

[skooooo]

1. Riots coming to an Iraqi neighborhood near you!

[Harper_is_Bush]

2. "Ahmed Chalabi..., assumed direct control of Iraq's powerful oil ministry"

I think that's just bizarre.

[firefox]

3. Freedom isn't free, so why would occupation not be worse? nt

[priller]

4. IMF: "Squeeze your people more" Chalabi: "Right on it!"

What a guy!

[FloridaPat]

5. So the 15% who have jobs are having trouble making a living.

I wonder how much Buscho are making off this disaster.

[libodem]

6. good god

their gas should be free...after all we have put them through. What? there are still poor people over there? I thought by now every one would have new everything...what with the new found democracy? Why doesn't the MSM ever print the good things happening over there? Just when are they going to welcome us by throwing flowers at out feet? (Enough smart-ass,) I thought the oil revenues were going to pay for everything, as far as the reconstruction, and the new good life they were promised. More f-ing lies!!!!

[LynnTheDem]

7. War for oil; Chalabi and bush

'American companies will have a big shot at Iraqi oil.'
-Ahmed Chalabi, October 2002

[Harper_is_Bush]

9. How the hell did Chalabi get appointed to lead the Iraqi oil ministry?

I don't even begin to understand what's happening over there. It's lunacy.

I don't wish death on anyone, but I would not be upset if insurgents tore him a new one with an RPG.
After all his pro-American coniving I'm sure he's top on the hit list.

[MADem]

8. After the Shah left Iran, the gas prices went way up

...and the lines went on forever. It was a nightmare! A lot of people heated their homes with kerosene, and there was a shortage of that too, and it was COLD...you had to know someone to get gas to stash (a real safe move, eh?) and people would steal gas from cars. I imagine it is a similar scenario over there...