Sunday, January 01, 2006

Rising Iraqi Fuel Prices Due to Insurgency Attacks

I wonder, since rising fuel prices have such a universal ability to help people of very different views find common ground, if the current fuel price increases in Iraq will lead to increased cooperation in removing the insurgency:

Iraqi Fuel Prices

Per the BBC:

Men marched along the main street protesting against a lack of basic services and the government's decision to raise petrol prices threefold 13 days ago. An overnight curfew was imposed.

The demonstration comes as Iraq grapples with a fuel crisis stemming from the closure of a major refinery in the north that has prompted panic buying of fuel and long queues at petrol stations. The refinery, in the northern town of Baiji, was closed 10 days ago following death threats to tanker drivers.

If the insurgency is responsible for the rising fuel costs and decreased supply, seems that everyone in the region has a very vested interest in taking care of that problem. It's pretty simple economics, end the insurgency attacks on the oil production and oil supply goes up. If supply goes up, prices for Iraqis go down and the more oil sold, the more money the government takes in to spend on redevelopment..............................