Thursday, August 18, 2005

Iraq Gas 5 Cents Per Gallon

Along the lines of the previous post on gas prices and the system that produces them, Iraq has one of the world’s lowest prices for gas:

Iraqi Gas

Per the AP:

drivers in Iraq pay as little as 5 cents a gallon for gasoline…….

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

By contrast, Americans pay about $2.55 a gallon and Britons pay $6.24. Iraqis also pay much less for a gallon of regular gasoline than in nearby countries such as Iran (38 cents), Jordan ($1.89) and Syria ($1.74).

Given the issues facing Iraqis while they try to form their new democracy and the insurgency is being battled, I can see the need for subsidies while the economy is being rebuilt……….

However, I can also see where those Americans who are no longer overly supportive of Operation Iraqi Freedom, having some issues with 5 cent gas in Iraq when they are paying $3…………………………..