Iraqis unmoved by call to withdraw food and oil subsidies [View All]

[Barrett808]

Iraqis unmoved by call to withdraw food and oil subsidies
By Steve Negus and Dhiya Rasan in Baghdad
Published: June 12 2005 18:09 | Last updated: June 12 2005 18:09

Two years ago, when the pumps ran dry at Iraq's petrol filling stations, angry motorists muttered that Americans were stealing the fuel to drive their tanks.

At the weekend, when the same thing happened, Iraqi motorists grumbled that their own government was attempting to phase out petrol subsidies by stealth.

This shift in conspiracy theories, from the highly improbable to the relatively plausible, comes as Iraq's new leaders launch a drive to explain why economics, not geopolitics, lie behind the country's constant shortages of fuel and electricity.

In petrol station queues, in living rooms and on television, Iraqis argue whether or not subsidies on food and fuel help the poor or cripple the economy.

The latest debate was triggered when regular petrol - sold at the pumps at the heavily subsidised price of 1-2 cents per litre - suddenly disappeared, leaving only an "improved" variety available at 4 cents.

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http://news.ft.com/cms/s/dae7e940-db61-11d9-913a-00000e2511c8.html