Iraqi gasoline is the cheapest in the world at $.05 per gallon

A new report indicates that while Iraq\’s economy remains in a shambles and the prospect of future growth is still dim, Iraqi citizens do enjoy some of the least expensive gas prices in the world.

The International Monetary Fund says Iraqi drivers currently pay an average of 5 U.S. cents a gallon (1.32¢/L) for gasoline. This contrasts to averages of $2.55 (67.4¢/L) in the United States and $6.24 ($1.65/L) in Great Britain. Even neighboring Iran pays more at the pump than Iraq; 38 cents a gallon (10.0¢/L).

Is Gasoline free in Iraq?

The low cost is due in great part to pre-war government subsidies on petroleum products, which are still in effect today.

The IMF cautioned in its report that the subsidies pose a threat to the country\’s economic growth. The country is still subjected to near-daily rebel attacks, high unemployment, inflation, and regular power, water, and sewage outages.

Meanwhile, Iraq\’s oil output is gradually increasing. Prior to Operation Iraqi Freedom, Iraq\’s daily crude output was 2.5 million barrels. Oil production is 1.6 million barrels per day this week. Iraq\’s oil reserves are believed to be around 115 billion barrels, making it the world\’s third largest.

Is Gasoline Free in Iraq Today?

Gasoline in Iraq was heavily subsidized by the government, which made it relatively cheap for consumers. However, it is essential to note that situations can change over time, and my information might not be up-to-date.

The availability and pricing of gasoline can be influenced by various factors, including government policies, economic conditions, and global oil prices. Political instability and regional conflicts in Iraq can also impact the country\’s oil production and distribution.

Sources

• \”Iraqi Gasoline – $.05 Per Gallon\” — AP, August 18, 2005 (purchasing power parity – $2,100 2004 est. http://www.cia.gov/cia/publications/factbook/geos/iz.html )