The secret history of U.S. mistakes, misjudgments and intelligence failures that let the Iraqi dictator and his allies launch an insurgency now ripping Iraq apart
According to former Oil Minister Issam Chalabi, Iraqi refineries currently are operating at only 50 percent-75 percent of capacity, forcing the country to import around 200,000 bbl/d of refined products, at a cost of $200-$250 million per month. This does not include the additional cost of steep government subsidies on the consumer price of gasoline, which runs at under 10 cents per gallon. It is estimated that, overall, direct and indirect oil subsidies cost Iraq $8 billion per year. Subsidies also encourage illegal smuggling of oil out of Iraq, and exacerbate shortages within the country. In order to reduce Iraq's need for oil product imports, significant investment will be needed to perform refinery upgrades (Iraq had identified dozens of such projects prior to the war) and possibly to build new refineries.
expatriot in Middle East as child, retired teacher.
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