Iraq plans tenfold rise in fuel prices in 2006

BAGHDAD – Iraq will gradually increase state-controlled domestic fuel prices tenfold in 2006 to meet International Monetary Fund demands, an Iraq official said on Monday.

The move is likely to spark public protests. Iraq already increased prices by 200 percent in December, igniting protests and creating a rift between the oil ministry and the government over external political pressure.

“We have to meet demands from the IMF, they said the prices should be equal to the prices in neighboring countries,” another source in the oil industry said.

“The price of benzene (gasoline) will gradually increase in 2006 to reach about 600 dinars (41 cents) per liter,” said the Iraq official.

Reuters