Iraq rations fuel to ease critical shortages
Reuters AlertNet - Iraq rations fuel to ease critical shortages
04 Sep 2005 13:46:58 GMT
Source: Reuters
BAGHDAD, Sept 4 (Reuters) - Oil-rich Iraq, which holds the world's third largest crude reserves, is to impose further gasoline rationing, the government said on Sunday, as creaking infrastructure has led to critical shortages.
Starting on Tuesday, vehicles with licence plates ending in an even number will only be able to drive in Baghdad and surrounding regions every other day, with vehicles holding odd-numbered licence plates being allowed in on the other days.
Prime Minister Ibrahim Jaafari agreed to enforce the new law "because of ... these times of emergency", the government said in a statement.
Iraq already rations fuel by only allowing cars with odd and even number plates to fill their tanks on alternate days.
Despite its huge reserves, Iraq's refining capacity has been hard hit by lack of investment during years of sanctions against Saddam Hussein. The country's biggest refinery, Doura, in Baghdad, regularly belches black smoke across the capital.
The lifting of sanctions also led to a huge influx of new cars, previously all but unobtainable. By some estimates there are five times more cars in Baghdad now than before the U.S. invasion in 2003.
Gasoline remains cheap, costing just over one U.S. cent per litre at the official rate. But there are massive queues at official retailers, with cases reported of people shot over arguments for a place in line.
As a result, a flourishing black market has sprung up, with gasoline trading for around 20 times the subsidised official price.
On Saturday, an oil ministry source said crude oil exports from the main northern oilfield of Kirkuk through a pipeline to the Turkish Mediterranean port of Ceyhan had been halted completely after a bomb set the line ablaze.
Sabotage has also been a major factor behind severe fuel shortages across Iraq.
04 Sep 2005 13:46:58 GMT
Source: Reuters
BAGHDAD, Sept 4 (Reuters) - Oil-rich Iraq, which holds the world's third largest crude reserves, is to impose further gasoline rationing, the government said on Sunday, as creaking infrastructure has led to critical shortages.
Starting on Tuesday, vehicles with licence plates ending in an even number will only be able to drive in Baghdad and surrounding regions every other day, with vehicles holding odd-numbered licence plates being allowed in on the other days.
Prime Minister Ibrahim Jaafari agreed to enforce the new law "because of ... these times of emergency", the government said in a statement.
Iraq already rations fuel by only allowing cars with odd and even number plates to fill their tanks on alternate days.
Despite its huge reserves, Iraq's refining capacity has been hard hit by lack of investment during years of sanctions against Saddam Hussein. The country's biggest refinery, Doura, in Baghdad, regularly belches black smoke across the capital.
The lifting of sanctions also led to a huge influx of new cars, previously all but unobtainable. By some estimates there are five times more cars in Baghdad now than before the U.S. invasion in 2003.
Gasoline remains cheap, costing just over one U.S. cent per litre at the official rate. But there are massive queues at official retailers, with cases reported of people shot over arguments for a place in line.
As a result, a flourishing black market has sprung up, with gasoline trading for around 20 times the subsidised official price.
On Saturday, an oil ministry source said crude oil exports from the main northern oilfield of Kirkuk through a pipeline to the Turkish Mediterranean port of Ceyhan had been halted completely after a bomb set the line ablaze.
Sabotage has also been a major factor behind severe fuel shortages across Iraq.
posted by Marcel at 3:53 PM
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