WAR: Gasoline in Iraq Costs 5 Cents a Gallon

Those who ponder whether Iraq is better off today than they were under the regime of Saddam Hussein might want to consider this. Iraqis are paying as little as five cents per gallon of gasoline. Gasoline prices are heavily subsidized by the government. Insurgent attacks severely limit Iraq's oil production and might lead to budgetary shortfalls for the government. Iraq is estimated to sit atop the third largest oil reserve in the world.



Clearly, the price of gas doesn't tell the whole story of the changes in Iraq since Saddam was deposed, but we so seldom hear the good news coming out of Iraq, it does help I think to consider even such a minor thing. We should also remember that Iraq is working on a new constitution, elections have been held that reverberated throughout the Middle East, energizing the Lebanese to retake control of their nation, women have rights never before dreamed of and there are even signs that the rival Islamic factions will be willing to put aside differences for the greater good of a new Iraq.

how much was gas while sadam was in power? Then maybe this post will have some meaning. I am pretty sure gas prices have always been low in these countries.

Grady,

I'm not sure how low gas prices justifies an illegal invasion and substantial abuses towards the Iraqi people by the American goverment, and these under the premise of a global threat posed by the Iraqi goverment. In principle, nothing can truely be galvanized that can justify this war, or even digress from the status quo argumentation for it; however, an apology on behalf of the Bush Administration could surely do some justice.

You cannot by any stretch of the immagination conclude that the Bush Administration is responsible for widespread democratic reforms in the Middle East, and when these reforms are nothing but superficial addedums. And it should also be noted that you cannot change the cultural dogma that has kept the women of Iraq subordinate for hundreds of years within a few; that's just simply ridiculous and outright ignorant, and of all people, you, someone with the credentials in sociology, should have been more astute in this regard.

Luxifero

A nickel a gallon and who can afford it?
Or who can get it?
And who needs it?

Would like to know more before my anger surfaces.

With unemployment at something like 40%, are there very many Iraqis left who can buy cars?

Maybe they can use gasoline lamps for light or cooking, as their power grid is pretty iffy......cheap gas seems a pretty poor consolation otherwise.

How much is a new car in Iraq? or is there ANY new car dealers in there?

Maybe the so called "insurgents" have bought them all up to make them into car bombs, or weapons platforms

Besides, when you are one of the top ten oil producing countries that doesn't rely on 50% of its gas consumption coming from imported oil (liek the US) you kind of expect the oil there to be cheap.

Originally posted by GradyPhilpott
Those who ponder whether Iraq is better off today than they were under the regime of Saddam Hussein might want to consider this. Iraqis are paying as little as five cents per gallon of gasoline.

It seems they were probably paying 5 sents per gallon before the invasion and the new government is just continuing the practice. They also used to get free electricity under Saddam but I don't know if that's still the case.

Here's an interview with Tim Russert and Colin Powell from June of 2004:

www.msnbc.msn.com...

MR. RUSSERT: The cost of the war--this was on the Associated Press wire the other day. "Cheap gas from the war only for Iraqis, not Americans. While Americans are shelling out record prices for fuel, Iraqis pay 5 cents a gallon for gasoline, a benefit of hundreds of millions of dollar subsidies bankrolled by American taxpayers. A three-month supply costs American taxpayers more than $500 million, not including the cost of military escorts to fend off attacks."

SEC'Y POWELL: This is the nature of the economy that we inherited from this regime, a regime that was bankrupting itself by providing these kinds of subsidies for gas, for food, and for other necessities which they control. It was a way in which they controlled the population. As the new government takes over and as the economy settles down and it becomes more market-based, you will start to see all of these prices start to go up to market level conditions or certainly not at the current subsidized level. Even electricity was free and we have to change all of that as we bring this country along and bring it into the 21st century and into an integrated economic world.

I'm almost certain this was discussed on ATS before but I can't find the link.

[edit on 20-8-2005 by AceOfBase]

What they are saying is that the people of Iraq have the same right to be ripped off by energy suppliers in their country just like the rest of us. Who here would complain if your electricity was free and you were paying five cents a gallon for gas?

You know what. I would assume fuel costs for our tanks and humvees would take up a good portion of the cost of the war. But the humvees can fill up at the local gas stations for a few dollars. Does our statements show that were paying something else?

This only tells me that there is absolutely no use or need in Iraq for gasoline. Demand is not there.

Thats it.

[edit on 21-8-2005 by dgtempe]

If Iraq can get their constitution finished by tomorrows deadline then you will see these gas subsidies abolished and will see a revaluation of Iraq's currency following the Bush administrations economic plan for Iraq, this will then allow the Iraqi people enhanced purchasing power and the ability to afford the gas without subsidies.

Although gas is currently 5 cents per gallon it is still sold on the black market by smugglers who resell the fuel in neighboring countries at much higher prices.

Let's hope the Iraq constitution can be completed on time and maybe will will see better things coming to the Iraqi people.

How do they get to pay 5 cents a gallon? occurs thanks to the generosity of the American government, while we pay record prices at the pump, a benefit of hundreds of millions of dollars in subsidies bankrolled by American taxpayers is going into Iraq.

Taking in consideration that about 80% of the population in Iraq is unemployed I guess 5 cents a gallon is still a high price to pay if you have to put food on the table.

Also Iraq has not been able to pump production to the same level before the war, so I guess we can afford to help the Iraqis with our taxpayer dollar to make sure they are able to move around.

Originally posted by marg6043
How do they get to pay 5 cents a gallon? occurs thanks to the generosity of the American government, while we pay record prices at the pump, a benefit of hundreds of millions of dollars in subsidies bankrolled by American taxpayers is going into Iraq.

Marg you missed part of the story it states

Thanks to generous government subsidies on petroleum products -- which the IMF criticized as a threat to the country's fragile economy -- Iraq has some of the cheapest gas in the world.

I take that to mean the Iraqi government not the US since it does not state U.S. subsidies.

Taking in consideration that about 80% of the population in Iraq is unemployed I guess 5 cents a gallon is still a high price to pay if you have to put food on the table.

No one knows the true rate of unemployed it ranges from 40 percent to 80 percent depending on which source you want to believe.

Also Iraq has not been able to pump production to the same level before the war, so I guess we can afford to help the Iraqis with our taxpayer dollar to make sure they are able to move around.

But American taxpayers are not subsidising the gas the Iraqi's are.

[edit on 8/21/2005 by shots]

Anywhere up to 100,000 Iraqi men, women and children killed by sanctions and an unjust invasion founded on outright lies, and now we cheer because the oil is flowing again in an oil-rich country? What's wrong with this picture?

Just goes to show how we in the West measure a nation's success. Blood for oil indeed... Now we just have to help them to produce the first Iraqi-manufactured SUV.

Originally posted by shots
But American taxpayers are not subsidising the gas the Iraqi's are.

Prior to the handover of power, the US was picking up the tab for subsidizing the gasoline.
I assume the burden was passed off to the interim government after the handover of power.

Originally posted by AceOfBase

Originally posted by shots
But American taxpayers are not subsidising the gas the Iraqi's are.

Prior to the handover of power, the US was picking up the tab for subsidizing the gasoline.
I assume the burden was passed off to the interim government after the handover of power.

I would like to see proof of that if you do not mind.

It really makes no difference since no can say that the prices in these countries are subsidized by US Dollars. Kindly note Venezuela is only paying .12 a gallon. I paid .11 when I was there earlier this year. Considering its location and amount of oil reserves it has I do not find .5 a gallon out of line.

Saudi Arabia Riyadh $0.91
Kuwait Kuwait City $0.78
Egypt Cairo $0.65
Nigeria Lagos $0.38
Venezuela Caracas $0.12

I would love to be able to pay $.05 per gallon of gas, in either my currency, Canadian or any other dollar backed economy.

Imagine filling up a tank for between $.75 and $1.00 and earning that $.05 before even blinking on crossing the entry to the worksite.

Not only are Iraqis fuelling their autos, they also fuel their generators so that they can actually have electricity for the up to 16 hours throughout the course of a day that they do not on average have electricity.

Everything is relative however, and $.05 USD, which is what I presume is the currency cited and which today equals 73.75 Iraq Dinars, it may not be so appealing to Iraqis.

Under Hussein, as I recall, the average earnings were 100ID per month. Of course capitalism was just a term used to describe the west in those days 2.5 years ago. So, with the advent of free enterprise brought to the Iraqis by western ideal, it is doubtful that inflation has not taken root.

What you needed to do to make your case for positive change was to show the wage differential from pre-invasion to now, the inflation factor and the exchange. How positive after all would that spin be if it read?:

Iraq's earn 500 dinars per month and pay 73.75 dinars per gallon of gas.

Now if by chance Iraqis on average make 5 times the Hussein era wage, s/he is left with 51.25ID if s/he is in need of an auto fill once a week. Then s/he has to worry about diesel for the generators and the taxes imposed by Past President Bremmer.

Shots, the MSNBC link I posted earlier in this thread says that it was being subsidized by the US after the fall of Saddam.

Here's another article that says the same:

signonsandiego (June 2004)

Although Iraq is a major petroleum producer, the country has little capacity to refine its own gasoline. So the U.S. government pays about $1.50 a gallon to buy fuel in neighboring countries and deliver it to Iraqi stations. A three-month supply costs American taxpayers more than $500 million, not including the cost of military escorts to fend off attacks by Iraqi insurgents.

The arrangement keeps a fleet of 4,200 tank trucks constantly on the move, ferrying fuel to Iraq.

Iraq's fuel subsidies, which are intended to mollify drivers used to low-priced fuel under Hussein, have coupled with the opening of the borders to create an anarchic car culture in Baghdad.

It seems that what is going on with the Iraqi oil more than the government is allowing us to know.

Is been crashes between Iraqi workers and Haliburton subsidiaries like Kellog brown and Root over the oil production in the south of Iraq.

The northern parts of Iraq are paralyzed and the only company now producing in Iraq is the The Southern Oil Company (SOC) it seems that the sourthern part of Iraq is under the British coalition forces.

It seems that this company mostly supporting Iraqi workers are against Haliburton for bringing Pakistanis and Indian workers to Iraq to work.

Collectively physically expelled a number of their Baathist managers. Some however were brought back to work, albeit in different oil company sectors by the Occupation Authority.Last Autumn workers threw out Kellogg Brown and Root employees - both the imported Pakistani and Indian labourers and the top brass of the company, declaring the SOC a no-go zone for all foreign occupation-serving workers and interests.

www.basraoilunion.org...

It seems that the Iraqi people have some very good supporters when it comes to the vast oil supplies in the south of Iraq and they want the Iraqi people to be the ones in charge of these resources not foreign companies.

Originally posted by AceOfBase
Shots, the MSNBC link I posted earlier in this thread says that it was being subsidized by the US after the fall of Saddam.

Keyword being was. That does not mean we are doing it now. The way Marg made it sound was as if this is an on going thing, which I doubt it is.