This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS BAGHDAD 004335 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958:  N/A 
TAGS: EPET ENRG ECON EFIN KCOR PGOV IZ
SUBJECT: IRAQ FUEL PRICES - A SNAPSHOT 
 
REF: A. BAGHDAD 4322   B. BAGHDAD 3988 
 
SENSITIVE BUT UNCLASSIFIED - GOVERNMENT DISTRIBUTION ONLY 
NOT FOR INTERNET DISTRIBUTION 
 
¶1.  (SBU) SUMMARY: Black market prices are far outstripping 
the modest GOI efforts at price reform.  "Unofficial" price 
rises for gasoline begun in September (Ref B) have spread to 
Basrah, Kirkuk and Mosul.  END SUMMARY. 
 
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BLACK-MARKET PRICES 
------------------- 
 
¶2.  (SBU) Fuel shortages are having a direct impact on black 
market prices for gasoline, particularly in Iraq's northern 
provinces where the fuel situation has become serious (ref A 
and septel).  An informal price survey carried out by 
Regional Embassy Offices (REOs) and State Embedded Teams 
(SETs) around Iraq showed the following prices as of October 
18 ($1.00 equals 1470 Iraqi dinar): 
 
Baghdad        $0.89/gallon 
Basrah         $0.76/gallon 
Kirkuk         $1.26/gallon 
Tikrit         $0.63/gallon 
Najaf          $1.77/gallon 
Mosul          $2.53/gallon 
 
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PRICES REPORTED RISING AT GAS STATIONS 
-------------------------------------- 
 
¶3.  (SBU) The "unofficial" price rise from $.05 to 
$.13/gallon for regular octane gasoline that went into 
effect in Baghdad in mid-September (Ref B) has been 
introduced in government-owned gas stations in Kirkuk and 
Mosul, according to reports from the REOs there.  Basrah 
reported prices as high as $.15/gallon.  Reports from 
smaller cities continue the old price or $.05/gallon at 
service stations. 
 
¶4.  (SBU) Private stations and, to a lesser extent, state- 
owned stations, reportedly apply government prices 
sporadically.  For example, the practice at service 
stations, both government and privately-owned, is generally 
that the price of fuel is open to negotiation for amounts 
above the 50 liter/customer limit.  The rise to $.13/gallon 
appears to be as much an acknowledgement of that reality as 
it is true price reform.  It is unclear how much of the 
increase actually makes it to the government's coffers.  Any 
amount exceeding the government's new price ceiling is 
certainly going into the station-owner's pocket. 
 
Satterfield