Baghdad, Iraq – The Eco-Iraq Observatory, which specializes in local economic affairs, revealed on Saturday a government plan to raise fuel prices to maximize state revenues. It also warned of direct economic repercussions that could negatively impact citizens and market activity, while emphasizing that Iraq remains among the countries with the cheapest fuel prices globally. In a statement received by Shafaq News Agency, the observatory said that cars in Iraq consume approximately one billion liters of gasoline of various types monthly. It also noted the consumption of similar quantities of diesel fuel.
He pointed out that Iraq ranks seventeenth globally among countries with the cheapest fuel prices. The price of a liter of gasoline is approximately $0.649, compared to a global average of $1.30 per liter. He explained that the government’s move to raise prices is justified by the increased cost of domestic production. It also stems from a desire to maximize state revenues in light of the budget deficit. The Eco-Iraq Observatory added that the potential increase will include various petroleum products, including gasoline, diesel, kerosene, jet fuel, and fuel oil.
The observatory criticized this move, arguing that it would lead to higher transportation, production, and service costs. This, in turn, would directly impact the prices of basic commodities. Furthermore, it would put pressure on citizens’ purchasing power and slow market activity. The observatory warned that raising fuel prices could exacerbate inflation and negatively affect commercial and industrial activity. It also urged the government to carefully consider available financial alternatives and avoid placing additional burdens on citizens given the current economic conditions.
