Iraqi government to increase fuel prices
Cars filling up at a petrol station in Baghdad, Iraq. Photo: AFP
Baghdad (IraqiNews.com) – The public has been shocked by the Iraqi cabinet’s recent decision on Tuesday to increase gasoline prices for automobiles.
Premium gasoline will now cost 30 percent more, while super-grade gasoline will cost 25 percent more.
This measure, which was part of a wider government attempt to alleviate traffic congestion, has instead caused considerable resentment and fury among drivers, particularly taxi drivers.
The cabinet increased the cost of premium gasoline (95 octane) from 650 Iraqi dinars ($0.50) to 850 Iraqi dinars ($0.65) per liter at its weekly meeting.
The price of super gasoline (98 octane) will rise from 1,000 to 1,250 dinars. The price of regular gasoline (low octane) will remain at 450 dinars.
The cabinet said that the new rates would take effect on May 1.
Mustafa Al-Kadhimi’s government reduced the cost of premium high-octane gasoline from 850 dinars to 650 dinars per liter in 2020.
Growing worries are being expressed about the possible effects on the economy, particularly the possibility of a more widespread price increase that would affect many industries across the country.