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U.S. Subsidizing Gas Prices In Iraq

HeadlineJun 08, 2004

While gas prices in the U.S. reach record levels at over $2 per gallon, the Associated Press is reporting that U.S. taxpayers are subsidizing the cost of gasoline in Iraq to keep the price at just 5 cents a gallon. Even though Iraq is a major oi producer it no longer has the infrastructure to refine its own gasoline. So it is costing the U.S. government about $1.50 a gallon to import gas from other countries. But in an attempt to win over the hearts and minds of the Iraqi people, the US is footing most of the bill to keep the price at 5 cents a gallon at the pump — the same price it was under Saddam Hussein. There is concern what the reaction will be in Iraq when drivers have to start paying the market rate for gas.

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