Tuesday, December 20, 2005

Two news items in one :: AFP

Item 1: Iraqis are free to demonstrate without fear of reprisals from their government.

Item 2: "Iraq faces gas shortages despite low prices." Uh, let's make that because of low prices.

Some extracts from the article:
The Iraqi government has brought in higher petrol prices, which are still among cheapest in the world, provoking an angry demonstration in the depressed southern town of Kut.
. . .
One litre (.25 gallon) of leaded petrol has risen from 50 to 150 dinars (three US cents to one US dollar), oil ministry spokesman Assem Jihad said Sunday. "We are going to save 500 million dollars each year, which will go towards funds for poor families, managed by the labour and social affairs and planning ministries," Jihad told AFP.
. . .
Government officials have long said that the government-subsidized fuel prices encourage criminals to smuggle fuel to Iraq's neighbours.
Those so-called criminals are merely using the fuel in the best way they know how, which in this case means reselling it to someone who places a higher value on it.

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2 Comments:

Blogger Slagothor said...

Wow - I had no idea the relationship between the Iraqi Dinar and the US Dollar was non-linear (50 ID = 3 cents, 150 ID = $1).

Or is this more "Bush-onomics"?

8:23 AM  
Blogger Tim Newman said...

Presumably the figures take into account inflation. Unless the Iraqi Dinar is pegged to the dollar, the relationship will not be linear.

5:16 AM  

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