Iraqis protest government decision to hike fuel prices

 

By Haqi Ismael

 

Azzaman, December 22, 2005

 

Iraqis are unhappy about the latest hikes in fuel prices which the government announced only a few days after the elections.

 

Demonstrations have been reported in several provinces in the country and some protests have even occurred in southern cities seen as bastions of the outgoing Shiite-dominated government.

 

The rise in fuel prices is expected to have far-reaching impact on economic activity in the country. Transport fees and prices of essential items have risen as a result.

 

The hikes cover main oil products including gasoline which now costs three times as much. A liter of locally produced gasoline has shot to 150 dinars from 50.

 

The government says it hopes to save up to $500 million from the latest increases, which have also covered kerosene, gas and diesel fuel.

 

Fuel prices are cheaper in Iraq than neighboring countries. The low prices have fueled cross-border smuggling.

 

Iraq, though sitting on the world’s second largest oil reserves, has turned into a net importer of fuel. The country’s import fuel bill is estimated at more than $100 million a month

 

But the hikes, announced shortly after the elections, have taken Iraqis by surprise.

 

“Is this the reward we get for taking part in the elections,” responded Hayder Sadeq, a taxis driver.

 

The hikes will certainly deepen problems related to movement of commuters inside major cities and passengers.

 

“This decision (to raise fuel prices) is inhuman and will have adverse impact on a large portion of the population,” said Malek Hussein.

 

“I am really disappointed. I initially thought the decision was a joke, merely a rumor. How come that those we voted for them do this to us,” said Jassem Hannoun.

 

Azzaman correspondents across the country reported angry scenes at filling stations and protests in several areas.

 

The government is reported to have taken “precautionary measures” on how to face the protesters.

 

Sadeq, the taxi driver, said he was asking clients treble the fare he demanded before.

 

“Prior to the decision I paid 5,000 dinars to fill my tank. Now I have to pay 15,000 dinars,” he said.

 

The government has said it would use the money from the hike in fuel prices to finance a social security program.