posted on June 6, 2004 04:18:52 PM new
By JIM KRANE, Associated Press Writer
BAGHDAD, Iraq - While Americans are shelling out record prices for fuel, Iraqis pay only about 5 cents a gallon for gasoline — a benefit of hundreds of millions of dollars subsidies bankrolled by American taxpayers
Before the war, forecasters predicted that by invading Iraq and ousting Saddam Hussein, America would benefit from increased exports of oil from Iraq, which has the world's second largest petroleum reserves.
That would mean cheap gas for American motorists and a boost for the oil-dependent American economy.
More than a year after the invasion, that logic has been flipped on its head. Now the average price for gasoline in the United States is running $2.05 a gallon — 50 cents more than the pre-invasion price.
Instead, the only people getting cheap gas as a result of the invasion are the Iraqis.
Filling a 22-gallon tank in Baghdad with low-grade fuel costs just $1.10, plus a 50-cent tip for the attendant. A tankful of high-test costs $2.75.
In Britain, by contrast, gasoline prices hit $5.79 per gallon last week — $127 for a tankful.
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.
Iraqi drivers protest that the price difference between a gallon of gas in the United States and Iraq is fair, because the average Iraqi earns around $1,000 per year, a thirtieth of the average U.S. wage.
"If the price of gas goes up, we'll see lots of anger in the street," said cab driver Hashim, at a grimy filling station on Saadoun Street in central Baghdad.
Cheap gasoline is also needed to fuel the ubiquitous portable electric generators in Iraq, which power air conditioners during long daily electricity blackouts.
Hashim and another driver, convinced, like many Iraqis, that the United States reaps huge amounts of cheap Iraqi oil, said subsidized gasoline was the least Americans could provide in return.
"The United States controls all Iraqi resources now," said Jenan Jabro, 50, tanking up his black Opel. "So what if they have to pay a little bit for gasoline? That's nothing compared to what they get in return."
posted on June 6, 2004 05:22:11 PM new
Kiara - I think that gasoline works on an equation that no known mathemetician will ever be able to compute. If the average cost per gallon for bringing gas from Kuwait or Saudi Arabia is $1.50 I want to know what method they are using. Something in the math does not quite work when you figure that we transport crude a few thousand miles, the refine it and it does not cost that much (see city, state and federal taxes that take it above the $2.00 mark).
I agree that .05 a gallon is ridiculous but sounds like Haliburton is making a more than a few pretty pennies in transport fees. Once again - taxpayers are getting screwed at the government and it's contractors whim.
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If it's really "common" sense, why do so few people actually have it?
[ edited by fenix03 on Jun 6, 2004 07:24 PM ]
posted on June 6, 2004 06:21:03 PM new
I've never been able to understand it, fenix. Except to say it's all political and yes, the little guy gets screwed just like with every other thing the government has control of.
posted on June 6, 2004 07:26:32 PM new
So... Now you're daying it's NOT a "War for Oil"???
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We do not stop playing because we grow old. We grow old because we stop playing -- Anonymous
posted on June 6, 2004 07:57:08 PM new
I don't think oil was a primarary reason for the Iraq war. I think that the establishment of a power base in Iraq and protection for Israel were more important goals than oil or any other stated reason.
posted on June 8, 2004 09:46:46 AM new
I don't think it was a power war either because on June 30 they will have their own PM and then if everything goes right the United Nations will take over. I really don't think that Bush wants power over Iraq but again that is my opinion, but if he did why are they be having their own government and being over see'd by the UN.
