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Anger in Iraq over a "sudden decision"... and a reminder of a "general strike" that paralyzed the country
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2024-03-27 04:15
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Shafaq News/ In a surprising decision, the Iraqi Council of Ministers decided to raise car fuel prices by about 30% for improved gasoline, and by 25% for super, as part of a broad plan taken by the government to reduce traffic congestion, but this decision sparked anger and complaints from drivers in particular. And citizens in general, because of its economic repercussions that may lead to generally higher prices in the country.
Taxi owner Ali Muhammad from Baghdad says, “Taxi owners suffer from high taxes and almost daily traffic fines, accompanied by deteriorating streets that cause damage to the car,” noting that “the decision to raise the price of gasoline by 200 dinars once came to be the straw.” “That breaks the camel’s back, as it is a huge difference that will exacerbate the suffering in order to earn a living.”
The Council of Ministers voted during its regular session, yesterday, Tuesday, headed by Shia Al-Sudani, to increase the price of improved gasoline (high octane) from 650,000 dinars per liter to 850 dinars per liter, and premium gasoline from 1,000 dinars to 1,250 dinars per liter, as of May 1. Next.
This decision comes after a decision taken by Mustafa Al-Kadhimi’s government in 2020, to reduce the prices of high-octane “improved” gasoline to 650 dinars instead of 850 dinars per liter.
Taxi drivers are most affected
Muhammad added to Shafaq News Agency, “Taxi owners will be greatly harmed by this decision, as gasoline expenses will be high for them, and will also constitute an additional burden on employees, as their salaries have not been increased to cover this new rise in prices, so the Ministry of Oil must intervene, find a solution, and reconsider.” at the price of gasoline.
Meanwhile, employee Hussein Sajjad from Karbala Governorate, told Shafaq News Agency, “The high price of gasoline will negatively affect the citizen in general and the employee in particular, because raising the price is an additional expenditure on the employee’s salary, which remains the same in light of the constant high cost of living.”
Justifications for "regular gasoline"
Some observers underestimate the impact of raising the price of "enhanced gasoline" on the rise in transportation prices in general, as they believe that the prices of "regular" gasoline will remain unchanged, according to what a government source told Shafaq News Agency.
Regarding these justifications, Ammar Qasim (a car driver) says that the vast majority of citizens resort to using improved (high octane) gasoline, and stay away from regular gasoline because of its poor quality. He added to Shafaq News Agency that this poor gasoline causes car breakdowns and their repair is expensive. Especially since the majority of vehicles have engines that do not cope with the nature of this “poor” gasoline, according to its description.
A “sudden” decision after reducing imports by half
On March 20, the Petroleum Products Distribution Company confirmed that the amount of gasoline imports had decreased by half after operating the Karbala refinery, and indicated that the ministry’s plan to end gasoline imports was proceeding according to its time limit.
The company's general manager, Hussein Talib, told Shafaq News Agency, "The Ministry of Oil has drawn up a plan within a time limit to end the process of importing petroleum derivatives, especially gasoline," indicating that "after operating the Karbala refinery, the amount of gasoline imported decreased to 7 million liters after Iraq was importing 14 million liters.
Taleb continued, “After operating the North Refinery, gasoline imports will decrease to 4 million liters,” explaining that “increasing the production capacity of national refineries will compensate for the remainder of gasoline imports.”
Talib pointed out, "Iraq has ended the issue of importing other products of gas and white oil after local production reached self-sufficiency."
Citizen: Our country is oil, Prime Minister
Citizen Muhammad Youssef told Shafaq News Agency that the rise in gasoline prices means an increase in transportation prices and will bring with it an increase in all materials, and the increase in materials falls on the shoulders of the citizen, especially those with limited income and non-bribed employees, asking, “Have you thought about the market and what is happening in it, while waiting In order to reduce the cost of living, people raise the price of gasoline while we are in an oil country?
Youssef called on the Prime Minister to “reconsider the decision because it harms people.”
Quiet starvation policy
Meanwhile, citizen Adel Al-Wadi told Shafaq News Agency that the Council of Ministers’ decision to raise gasoline prices at the expense of the Iraqi people is an unjust decision and clear exploitation of the people, indicating that he rejects this quiet policy of starvation, especially since there are more taxes coming, calling on the representatives of the people to take their role. To stand against this decision.
"Incorrect" decision
Commenting on this and the increase in the price of gasoline, the economic expert, Abdul Rahman Al-Sheikhli, says: “Iraq is an oil country and relies on oil reserves, reserves and exports. There are stations for refining oil and producing petroleum products that have entered service, and refineries that had stopped working have also resumed work, and this was part of The price of gasoline is supposed to be reduced to reduce the burden on the citizen, not the other way around.”
Reminder of the general strike "Shell Iraq"
Al-Sheikhli added to Shafaq News Agency, “The government should not compare with the price of gasoline in neighboring countries and in European countries, as Iraq has its own characteristics and is different from them.”
He continued, saying, "Let the Sudanese government remember that large demonstrations broke out in the sixties of the last century, and a general strike paralyzed Iraq due to the increase in the price of gasoline by only 10 fils."
He asserts, “Issuing this decision from a party from above that does not know about the people’s conditions and what they are suffering is not correct, and this decision was supposed to be discussed through Parliament, which has representatives of the people and feels them.”
He believed that "the decision has economic repercussions, including an increase in the prices of food and services under the pretext of high transportation prices, as well as taxi fares, and thus the purchasing power of citizens will decrease. Therefore, the decision must be reconsidered within the month period that was given for its implementation on next May 1."
A decision that "impairs" the relationship between the people and the government
Economic expert Durgham Muhammad Ali told Shafaq News Agency that the Iraqi market is very sensitive and inflation rates are mainly high due to the dollar and the lack of domestic product, indicating that any increase is currently considered unjustified and deteriorates the market without any justifications to justify it.
He stated that this decision comes in light of the state’s new trend towards increasing collections from citizens through various means without interest in creating real development and expanding collections.
He added that increasing prices will put pressure on the street and undermine the positive relationship between the citizen and the government, which is the first government to represent him and care about addressing his problems. He hopes to withdraw from such decisions, whose timing is ill-considered and whose mechanisms are improvised, and to resort to means outside the box to support the culture of electronic payment, promote real development, enhance the investment climate, and move away from... Any decisions are considered investment averse.
Justification for an expert: Iraq is losing
In addition, economic expert Nabil Al-Marsoumi says that gasoline prices are largely linked to crude oil prices, as the price of a liter of improved gasoline in 2021 reached about 1,000 dinars per liter, which led Iraq to bear an annual loss of more than a billion dollars to support the price of improved gasoline internally.
Sulaymaniyah reduces gasoline prices
It is worth noting that the spokesman for Sulaymaniyah gas stations, Bahman Abdul Qader, announced on March 14 that the prices of gasoline of all three types would be reduced by 25 dinars.
Abdul Qader told Shafaq News Agency, "The price of super gasoline will be 1,200 dinars, while the price of a liter of improved gasoline will be 1,050, and regular gasoline will be 825 dinars."
He added, "Reducing gasoline prices is linked to a decrease in demand and an increase in supply in the market."
Bahman pointed out, "Since the beginning of this year, the price of gasoline of all three types has been reduced by about 100 dinars."
Offering the cheapest gasoline prices
It is noteworthy that, in January 2024, Iraq advanced one place in the list of the cheapest countries in the world with gasoline prices, reaching rank 13, while Iran topped the countries with the cheapest price, reaching $0.029 per liter.
According to data from the Global Petroleum Press website, which was reviewed by Shafaq News Agency, Iraq ranked 13th with a price of $0.572 per liter, while Qatar ranked 14th with a price of $0.577 per liter, and Oman ranked 17th with a price of $0.621 per litre. Colombia is ranked 42nd, with a price of $1,052 per litre.
Monaco and Hong Kong ranked last with the cheapest gasoline prices in the world.
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[You must be registered and logged in to see this image.]
2024-03-27 04:15
Share
Font
Shafaq News/ In a surprising decision, the Iraqi Council of Ministers decided to raise car fuel prices by about 30% for improved gasoline, and by 25% for super, as part of a broad plan taken by the government to reduce traffic congestion, but this decision sparked anger and complaints from drivers in particular. And citizens in general, because of its economic repercussions that may lead to generally higher prices in the country.
Taxi owner Ali Muhammad from Baghdad says, “Taxi owners suffer from high taxes and almost daily traffic fines, accompanied by deteriorating streets that cause damage to the car,” noting that “the decision to raise the price of gasoline by 200 dinars once came to be the straw.” “That breaks the camel’s back, as it is a huge difference that will exacerbate the suffering in order to earn a living.”
The Council of Ministers voted during its regular session, yesterday, Tuesday, headed by Shia Al-Sudani, to increase the price of improved gasoline (high octane) from 650,000 dinars per liter to 850 dinars per liter, and premium gasoline from 1,000 dinars to 1,250 dinars per liter, as of May 1. Next.
This decision comes after a decision taken by Mustafa Al-Kadhimi’s government in 2020, to reduce the prices of high-octane “improved” gasoline to 650 dinars instead of 850 dinars per liter.
Taxi drivers are most affected
Muhammad added to Shafaq News Agency, “Taxi owners will be greatly harmed by this decision, as gasoline expenses will be high for them, and will also constitute an additional burden on employees, as their salaries have not been increased to cover this new rise in prices, so the Ministry of Oil must intervene, find a solution, and reconsider.” at the price of gasoline.
Meanwhile, employee Hussein Sajjad from Karbala Governorate, told Shafaq News Agency, “The high price of gasoline will negatively affect the citizen in general and the employee in particular, because raising the price is an additional expenditure on the employee’s salary, which remains the same in light of the constant high cost of living.”
Justifications for "regular gasoline"
Some observers underestimate the impact of raising the price of "enhanced gasoline" on the rise in transportation prices in general, as they believe that the prices of "regular" gasoline will remain unchanged, according to what a government source told Shafaq News Agency.
Regarding these justifications, Ammar Qasim (a car driver) says that the vast majority of citizens resort to using improved (high octane) gasoline, and stay away from regular gasoline because of its poor quality. He added to Shafaq News Agency that this poor gasoline causes car breakdowns and their repair is expensive. Especially since the majority of vehicles have engines that do not cope with the nature of this “poor” gasoline, according to its description.
A “sudden” decision after reducing imports by half
On March 20, the Petroleum Products Distribution Company confirmed that the amount of gasoline imports had decreased by half after operating the Karbala refinery, and indicated that the ministry’s plan to end gasoline imports was proceeding according to its time limit.
The company's general manager, Hussein Talib, told Shafaq News Agency, "The Ministry of Oil has drawn up a plan within a time limit to end the process of importing petroleum derivatives, especially gasoline," indicating that "after operating the Karbala refinery, the amount of gasoline imported decreased to 7 million liters after Iraq was importing 14 million liters.
Taleb continued, “After operating the North Refinery, gasoline imports will decrease to 4 million liters,” explaining that “increasing the production capacity of national refineries will compensate for the remainder of gasoline imports.”
Talib pointed out, "Iraq has ended the issue of importing other products of gas and white oil after local production reached self-sufficiency."
Citizen: Our country is oil, Prime Minister
Citizen Muhammad Youssef told Shafaq News Agency that the rise in gasoline prices means an increase in transportation prices and will bring with it an increase in all materials, and the increase in materials falls on the shoulders of the citizen, especially those with limited income and non-bribed employees, asking, “Have you thought about the market and what is happening in it, while waiting In order to reduce the cost of living, people raise the price of gasoline while we are in an oil country?
Youssef called on the Prime Minister to “reconsider the decision because it harms people.”
Quiet starvation policy
Meanwhile, citizen Adel Al-Wadi told Shafaq News Agency that the Council of Ministers’ decision to raise gasoline prices at the expense of the Iraqi people is an unjust decision and clear exploitation of the people, indicating that he rejects this quiet policy of starvation, especially since there are more taxes coming, calling on the representatives of the people to take their role. To stand against this decision.
"Incorrect" decision
Commenting on this and the increase in the price of gasoline, the economic expert, Abdul Rahman Al-Sheikhli, says: “Iraq is an oil country and relies on oil reserves, reserves and exports. There are stations for refining oil and producing petroleum products that have entered service, and refineries that had stopped working have also resumed work, and this was part of The price of gasoline is supposed to be reduced to reduce the burden on the citizen, not the other way around.”
Reminder of the general strike "Shell Iraq"
Al-Sheikhli added to Shafaq News Agency, “The government should not compare with the price of gasoline in neighboring countries and in European countries, as Iraq has its own characteristics and is different from them.”
He continued, saying, "Let the Sudanese government remember that large demonstrations broke out in the sixties of the last century, and a general strike paralyzed Iraq due to the increase in the price of gasoline by only 10 fils."
He asserts, “Issuing this decision from a party from above that does not know about the people’s conditions and what they are suffering is not correct, and this decision was supposed to be discussed through Parliament, which has representatives of the people and feels them.”
He believed that "the decision has economic repercussions, including an increase in the prices of food and services under the pretext of high transportation prices, as well as taxi fares, and thus the purchasing power of citizens will decrease. Therefore, the decision must be reconsidered within the month period that was given for its implementation on next May 1."
A decision that "impairs" the relationship between the people and the government
Economic expert Durgham Muhammad Ali told Shafaq News Agency that the Iraqi market is very sensitive and inflation rates are mainly high due to the dollar and the lack of domestic product, indicating that any increase is currently considered unjustified and deteriorates the market without any justifications to justify it.
He stated that this decision comes in light of the state’s new trend towards increasing collections from citizens through various means without interest in creating real development and expanding collections.
He added that increasing prices will put pressure on the street and undermine the positive relationship between the citizen and the government, which is the first government to represent him and care about addressing his problems. He hopes to withdraw from such decisions, whose timing is ill-considered and whose mechanisms are improvised, and to resort to means outside the box to support the culture of electronic payment, promote real development, enhance the investment climate, and move away from... Any decisions are considered investment averse.
Justification for an expert: Iraq is losing
In addition, economic expert Nabil Al-Marsoumi says that gasoline prices are largely linked to crude oil prices, as the price of a liter of improved gasoline in 2021 reached about 1,000 dinars per liter, which led Iraq to bear an annual loss of more than a billion dollars to support the price of improved gasoline internally.
Sulaymaniyah reduces gasoline prices
It is worth noting that the spokesman for Sulaymaniyah gas stations, Bahman Abdul Qader, announced on March 14 that the prices of gasoline of all three types would be reduced by 25 dinars.
Abdul Qader told Shafaq News Agency, "The price of super gasoline will be 1,200 dinars, while the price of a liter of improved gasoline will be 1,050, and regular gasoline will be 825 dinars."
He added, "Reducing gasoline prices is linked to a decrease in demand and an increase in supply in the market."
Bahman pointed out, "Since the beginning of this year, the price of gasoline of all three types has been reduced by about 100 dinars."
Offering the cheapest gasoline prices
It is noteworthy that, in January 2024, Iraq advanced one place in the list of the cheapest countries in the world with gasoline prices, reaching rank 13, while Iran topped the countries with the cheapest price, reaching $0.029 per liter.
According to data from the Global Petroleum Press website, which was reviewed by Shafaq News Agency, Iraq ranked 13th with a price of $0.572 per liter, while Qatar ranked 14th with a price of $0.577 per liter, and Oman ranked 17th with a price of $0.621 per litre. Colombia is ranked 42nd, with a price of $1,052 per litre.
Monaco and Hong Kong ranked last with the cheapest gasoline prices in the world.
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