Signs of a massive wave of anger are looming in Iraq as a result of the decision to increase the prices of car fuel, which was approved by the Council of Ministers on Tuesday.
Although Iraqis felt relative satisfaction by the government of Mohammad Shiaa al-Sudani during the past year, especially after it employed more than 800,000 persons in the public sector, the spike in car fuel prices triggered dismay among them.
The government increased the cost of premium gasoline (95 octane) from 650 Iraqi dinars ($0.50) to 850 Iraqi dinars ($0.65) per liter. The price of super gasoline (98 octane) will rise from 1,000 to 1,250 dinars, while the regular gasoline (low octane) will remain at 450 dinars. The cabinet said that the new rates would take effect on May 1.
Popular anger often causes a decline in the prime minister's electoral chances. This means that Sudani might go back on his decision to increase the price of fuel, or face its possible repercussions, according to observers.
In contrast to the explanations provided by the government for increasing fuel prices to contribute to eliminating severe traffic congestion in Baghdad, experts said that the decision came in the wake of the losses incurred by the state as a result of subsidizing fuel prices, in addition to pressures exerted by international financial institutions.
In a post on Facebook, Researcher Salim Souza said that the “increase in gasoline prices in Iraq (and perhaps soon an increase in the prices of water, electricity, sewage, and other services bills, as I have heard) has local, internal and external reasons related to international monetary requirements, the size of debt, and global aid to Iraq.”
Al-Sudani had announced earlier this year that Iraq would stop fuel imports in mid-2025 after completing the construction of refineries in Baiji and Karbala and their production reaching its maximum capacity.
In January 2024, Iraq advanced globally to become the 13th country with the most affordable gasoline prices, according to data from the Global Petroleum Press website.