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

UNCLAS SECTION 01 OF 02 BAGHDAD 005073 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EPET ENRG ECON PGOV PINS IZ
SUBJECT: LIMITED DEMONSTRATIONS IN SOUTH AGAINST FUEL PRICE 
INCREASES: BAGHDAD AND THE NORTH QUIET 
 
REF: A. A) BAGHDAD 5039 
     ¶B. B) HILLAH 381 
 
 ¶1.  (SBU) SUMMARY: Governorate officials in several southern 
provinces reacted very negatively to the fuel price increases 
of December 18.  While the price increases appear to be 
accepted in the northern provinces, minor demonstrations, 
especially by taxi and truck drivers, were reported in the 
southern regional cities of Iraq.  We have no reports of 
major protests in Baghdad. END SUMMARY 
 
 
¶2.  (SBU) The GOI initiated fuel price increases across Iraq 
on December 18 (Ref A).  On December 18 and 19, 
demonstrations were reported in several governorates 
according to the Ministry of Finance.  None of the 
demonstrations were violent.  The size of the demonstrations 
ranged from 20 to 600 people, primarily taxi and truck 
drivers who are most directly affected by the price 
increases. 
 
¶3.  (SBU) On December 19, Dr. Muhammed Al-Aboudi, the 
Director General for Distribution for the Ministry of Oil 
(MOO) appeared on Iraqi television to explain the reasons for 
the price increases.  He reportedly was used as the ministry 
spokesman reportedly because the Minister of Oil and other 
more senior members did not want to be associated with the 
price increase during political discussions involved in the 
formation of the new government after national elections 
December 15.  Minister of Oil Bahr Ulom has publicly 
distanced himself from the price increases, and the 
newspapers quote him as saying he would resign if the prices 
were not rolled back. We do not know if the reports are true. 
 
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SOUTH 
----- 
 
¶4.  (SBU) Small demonstrations on December 19 in multiple 
cities saw crowds numbering in the hundreds, but not 
thousands.  In Maysan province, approximately 100 people 
demonstrated peacefully in front of the Pink Palace in the 
center of Amara, resulting in the move of the PRDC meeting to 
Camp Abu Naji, according to British embassy sources. Several 
hundred people demonstrated in the Basrah Al-Qarmah 
neighborhood as shown on Al-Arabiya television station in 
Basrah, with the police reportedly breaking up that 
demonstration. Elsewhere in Basrah, MNF-I PJCC reported three 
small demonstrations, one with about 50 people, and the other 
two with 75-100 people.  All demonstrations ended peacefully. 
 
----- 
NORTH 
----- 
 
¶5.  (SBU) In northern Iraq, no demonstrations have been 
reported, though there is some dissatisfaction reported.  A 
Kirkuk Provincial Council member complained publicly about 
the price increases.  In Tikrit a demonstration was rumored, 
but may not have occurred according to the State Department 
representative on the ground.  Dr Radhwan, Director of 
Finance at the MOO, told us, "the Northern portion of Iraq 
has accepted the new price increases, but one or two 
provinces in the South were complaining about the price 
increase for gasoline".  He also stated that the Prime 
Minister and Oil Minister might be talking about reducing the 
fuel price for gasoline. Radhwan hopes they will stay firm on 
the new prices, but just in case, he will have a proposal to 
reduce the price of gasoline to a price acceptable to the IMF. 
 
¶6.  (SBU) The GOI, as reported to us by multiple sources from 
the Prime Minister's office, will brief five people from each 
governorate on Wednesday, December 21 on the price increases. 
 The three governors in Al Muthanna, Karbala, and Al 
Qadisiyah Provinces reportedly are reacting strongly against 
the price increases, according to MNF-I reporting.  Two of 
the governors made threats to the local Ministry of Oil 
officials and ordered that the prices be reduced.  The 
Ministry of Oil officials reportedly stood firm, stating they 
would only take directions from the Ministry of Oil. 
 
¶7.  (SBU) COMMENT:  Embassy understands that the GOI may have 
some small room for maneuver in the matter of price hikes. 
Apparently, the price increase for regular gasoline was 
slightly above the minimum mandated by the IMF.  Hence, we 
would expect any "conciliatory" move to meet street protests 
to be for that fuel.  To date, however, demonstrations do not 
appear significant enough to push the government to change 
the present course.  END COMMENT 
KHALILZAD