BAGHDAD, 31 December 2005 — Iraq’s Deputy Premier Ahmed Chalabi was put in charge of the Oil Ministry yesterday after the minister, Ibrahim Bahr Al-Ulum, was relieved of his duties for protesting government-imposed petrol price hikes, an official said.
“The government has relieved Mr. Bahr Al-Ulum of duties for 30 days and put in charge Mr. Chalabi who heads the energy council,” the official said on condition of anonymity.
“The decision was taken because of Mr. Bahr Al-Ulum’s objections to the early introduction of higher petrol prices,” the official said.
The outgoing Iraqi government earlier this month announced a tripling of petrol prices in a bid to reduce subsidies, a move which sparked angry protests across the country. The petrol price increases came shortly before the International Monetary Fund (IMF) cleared a $685 million standby loan to help Iraq’s shattered economy get back on its feet.
As the price of its aid, the IMF had called on Iraq to reduce its generous oil subsidies, improve its economic data and shed more light on the resources given to its central bank.
Nearly half the government’s budget currently goes to subsidizing goods and services, mostly in the energy sector.
Bahr Al-Ulum had earlier threatened to resign unless the government canceled a decision to triple gasoline prices from 50 to 150 dinars (0.03 to 0.10 US cents) a liter.
The price hike, originally planned for the end of the year, was introduced immediately after the Dec. 15 general elections.
In a bid to alleviate the economic impact of such a rise on the poor, the government had promised payouts of some $330 million to two million families, but none have been made to date.
