Friday, March 09, 2007
Oil Ministry to raise price of fuel products
Fuel
(Azzaman) The Oil Ministry will have to hike prices of fuel products which are currently sold at highly subsidized rates, according to the minister Hussein Shahristani. The minister made the remarks ahead of a meeting with the International Monetary Fund which is coordinating the writing off of Iraqi debts. Shahristani said Iraq is obliged to honor the pledges it has made to the fund in return for financial assistance.
He did not say when the ministry will introduce the new rates but added the country will eventually have to reduce its huge fuel subsidies. Despite the subsidies, which are reported to cost hundreds of millions of dollars each month, Iraq still suffers from chronic fuel shortages. Subsidized fuel is hard to obtain and most Iraqis are forced to buy on the spot market at exorbitant rates.
Iraq currently imports huge volumes of fuel despite its massive oil wealth. But the selling and distribution of fuel is the type of economic activity where corrupt officials and profiteers are cashing in. Shahristani said the IMF has asked Iraq to raise fuel prices to levels comparable to those in neighboring countries.
He did not say when the ministry will introduce the new rates but added the country will eventually have to reduce its huge fuel subsidies. Despite the subsidies, which are reported to cost hundreds of millions of dollars each month, Iraq still suffers from chronic fuel shortages. Subsidized fuel is hard to obtain and most Iraqis are forced to buy on the spot market at exorbitant rates.
Iraq currently imports huge volumes of fuel despite its massive oil wealth. But the selling and distribution of fuel is the type of economic activity where corrupt officials and profiteers are cashing in. Shahristani said the IMF has asked Iraq to raise fuel prices to levels comparable to those in neighboring countries.
Labels: Hussain al-Shahristani, IMF, Oil Ministry
