The Blogiston Post

Politics, money, and war.

Thursday, October 23


The controversy over Halliburton's possible inflation of oil prices is heating up. The New York Times, New Information May Bolster Questions on Halliburton by Neela Banerjee reports that Iraq's State Oil Marketing Organization is also importing fuel but at lower rates than what Halliburton is charging.
But Iraq's State Oil Marketing Organization is now importing fuel, too, and from the same countries nearby as Halliburton. An Oct. 16 fax from the agency to the House Committee on Government Reform, where Mr. Waxman is the ranking Democrat, indicates that the Iraqis are bringing in gasoline at a much lower price than is Halliburton.

Halliburton said in response to the Congressional letter last week that it charges $1.59 a gallon for its gasoline imports, which includes the 2 percent profit margin. In the fax, the Iraqi marketing organization's general manager, Mohammed al-Jibouri, said that gasoline from Turkey costs $347 a metric ton delivered to Baghdad, which he said translates to about 98 cents a gallon.
What is the price at the pumps for a gallon of gasoline? According to the New York Times article, "4 cents to 15 cents a gallon at the pump" as a result of subsidies from the UN's Oil for Food program. The new $87 billion supplemental bill would shift the responsibility from the UN's Oil for Food Program to the American taxpayer.


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