All-night queues as Baghdad runs out of petrol ($4 billion smuggled out)

All-night queues as Baghdad runs out of petrol
By Oliver Poole in Baghdad
(Filed: 18/08/2006)

Iraq has the third largest oil reserves in the world but yesterday drivers were forming mile-long queues outside petrol stations, knowing that they would spend the night in their cars before they could fill up.

Only six weeks ago, Baghdad's streets were jammed with traffic. Now they are nearly empty because pumps have all but run dry.

The official explanation is attacks on infrastructure. A pipeline from the northern oilfields around Kirkuk was targeted last month while the Beiji power station, one of the country's largest, was partially closed after workers fled following death threats.

advertisementBut drivers queueing outside the Muthana petrol station in central Baghdad suggested that the real reason was crooked officials in the oil ministry. They accused officials of selling fuel to criminal gangs who sell it abroad at a huge profit.

The shortage could have more far-reaching consequences than creating misery for Baghdad's car owners. It is the latest sign that the economy may be on the brink of collapse. Inflation is running at 50 per cent, corruption is rife and, most importantly, the end of next month will bring to a close the American-funded reconstruction programme, even though electricity in Baghdad remains on for one hour in three at best.

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