Iraq doubles funding for oil imports

Thu Aug 17, 10:22 AM ET

BAGHDAD, Iraq - Iraq has doubled the money allocated for importing oil products in August and September to tackle the country's worst fuel shortage since Saddam Hussein's 2003 ouster, a senior Iraqi official said Thursday.

Falah Alamri, head of the State Oil Marketing Organization, which is responsible for Iraq's imports of oil products, said the money normally allocated by the government to buy oil products was doubled in August, to $426 million. The normally allocated amount would be doubled for September, too, Alamri told Dow Jones Newswires.

A gallon of gasoline now sells on the black market in Baghdad for about $4.92, although its official price is $0.64.

Iraq's three main oil refineries — Dora, Beiji and Shuaiba — are working at half their capacity, processing only 350,000 barrels per day compared to 700,000 barrels a day before the war.

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