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Iraq to decrease fuel subsidy 15 percent
27.2.2007 |
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February
27, 2007
BAGHDAD, -- Iraq's oil minister said on
Monday he will increase prices for scarce fuel to
keep in line with donor requirements.
Hussein al-Shahristani said he will increase fuel
prices by 15 percent next month, Gulf Daily News
reports.
Iraq subsidizes fuels costs to consumers.
As part of agreements for loans from the
International Monetary Fund as well as relief from
debt incurred during the Saddam Hussein regime, Iraq
agreed to reduce those subsidies.
The move is controversial since the country suffers
from shortages of transportation, heating and
cooking fuels.
It has gotten to the point that even in Kurdistan,
which is semi-autonomous and relatively violent
free, citizens are calling into question the ability
of the central government, Kurdistan Regional
Government U.S. envoy Qubad Talabani, told UPI in a
recent interview.
The low prices for fuel are believed to motivate a
massive and growing smuggling ring, purchasing cheap
oil products and selling them abroad at non-discount
rates.
Gasoline has increased from 20 dinars to 300 dinars
per liter now.
UPI
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