Analysis from Ramadan Al-Badran.. The gasoline decision will raise the prices of everything in Iraq.

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[size=52]Analysis from Ramadan Al-Badran.. The gasoline decision will raise the prices of everything in Iraq.. An expert compares it to the Iranian experience[/size]

[size=45]Businessman and political commentator Ramadan Al-Badran warned of the consequences of the government’s decision to raise gasoline prices, noting that this will generate an increase in transportation fare prices that will be reflected in various commercial sectors, and a deficit in the individual budget that will raise poverty rates. He cited the benefits of fuel subsidies adopted by a number of countries such as Iran used this to “encourage industry” and reduce the cost of production, which made it easier for it to expand into the markets of many countries around the world.[/size]
[size=45]Al-Badran said in a statement:[/size]
[size=45]The problem with gasoline prices in Iraq is that they are high, as the price of regular gasoline is 450 dinars per liter, which are the same prices in America if we exclude the taxes imposed there.[/size]
[size=45]Gasoline prices need support, and the government’s decision to raise the price of improved fuel came because it does not control the costs of production, import, and distribution.[/size]
[size=45]Lifting subsidies on improved and super gasoline in order to lift the cost burden in the budget is a step whose consequences will be borne by the individual.[/size]
[size=45]There are many countries that still support oil and gas, for example Iran, because this encourages the private sector to produce at lower costs for all sectors. The evidence is that all Iranian products are cheap and have begun to find markets in many countries.[/size]
[size=45]The Iraqi government does not distinguish between its resources and the state's resources, which allows any government to support sectors in order to turn the wheel of the economy into productive ones, and this certainly includes gasoline.[/size]
[size=45]Usually all governments in the world deal with individuals according to a standard, and observe two types of income. The first (apparent income), which is what the individual receives in cash, such as salaries, while the second (real income), which is what the individual receives in the form of government-subsidized services.[/size]
[size=45]Raising gasoline prices, increasing taxes, and imposing some financial matters will only have dire consequences for the individual.[/size]
[size=45]The decision will generate a deficit in the individual budget and the matter will increase poverty rates in Iraq, as the impact on the oil sector will greatly affect the transportation sector and then its impact will spread to various commercial fields.[/size]
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