Story by 1st Lt. Chris Heathscott
TAJI, Iraq -- As the people of Iraq continue to face the daily challenges of life in a war-torn nation, a recent issue has the locals lining up in the streets. The fuel behind this fight is propane, kerosene and benzene.
In a competitive economy, the price of a product often hovers around its approximate value. Value, however, is determined by the consumer. So, when the multi-billion dollar fuel industry created shortages at the pump as a result of corruption, the entrepreneurial spirit of the Iraqi people stepped up and formed a black market.
"Benzene is selling for 20 Dinar per liter [$0.04 a gallon], which is comparable to past prices," said Maj. Mike Warrington, civil military operations officer for the 39th Brigade Combat Team's 2nd Battalion, 162nd Infantry.
"However, there has been a surge in black market fuel prices to over 2,000 Dinar per liter [$5.22 a gallon], compared to around 200 Dinar per liter ($0.53 a gallon) a few months ago. On the extreme end of the scale is light propane gas, which sells at the fuel stations for 500 Dinar ($0.40) per container and carries a black market price of 12,000 Dinar ($8.28) per container."
"The problem is supply and demand," said Capt. Joel Lynch, commander of the 39th's Company A, 3rd Battalion, 153rd Infantry, who is monitoring the three fuel stations in his area of operations. "For whatever reason there isn't enough supply at the pump to meet the demand."
While there is much speculation on what conceived the issue with supply, a significant portion is said to be lost to the black market through the illegal sales of a corrupt industry. Other supply losses are actually visible on the side of the highways, with locals selling containers of fuel at exponential prices in makeshift roadside stands.
"Due to the lack of supply, citizens are forced to turn to the black market in order to meet their needs," said Capt. Jonathan Stubbs, of Searcy, Ark., who is also monitoring three fuel stations, as the commander of the 3rd Battalion's Company C.
"I have heard of fuel trucks arriving at stations and being set aside for black market buyersâ?¦more money in the pockets of the station owners and managers...it's a very corrupt system."
These problems could prove to be minor issues one day, compared to the lack of safety standards at these stations. At one station, locals walk through puddles of kerosene that remain standing due to the soil having absorbed its potential.
Cigarette butts and expended ammunition casings lay on the fuel soaked earth, as the locals would take their turn filling up with benzene.
"We constantly have to tell locals to put their [cigarettes] out," Lynch said. "They'll [smoke and stand] in a pool of gas. It's insane. That's the way it is at all the plants."
Company A has sought to ease the distribution issues in their area by identifying and correcting the problems. The black market continues and the distribution problem remains far from corrected, but the chaos at the pumps shows evidence of a short-term improvement at least.
"When we arrive at a fuel station we notice that operations tend to smooth out fairly quickly," said Warrington, who tracks 17 fuel stations where the fuel problem is most prevalent for the 39 BCT.
"Some of the problem is that only a few pumps are operational and there is some cutting in line to get to those pumps. While we are present, people tend to be orderly and the lines progress smooth until we leave."
"Every improvement is a step in the right direction," Warrington continued. "This is a complicated process and like all of our other efforts, we probably won't see the level of change we desire overnight. In the long run, I am confident, that if we keep working in good faith with the people, that we will see progress."
Until the end of that long road to progress is found, the Iraqis continue to wait in line for hours, even overnight in some cases according to Stubbs.
"I just hope that we can get the system balanced, so that all fuel is being distributed fairly and at the right price," he said. "However, I do not expect to fix the problem before I leave. It will take a while in order to rid the system of corruption."
"I believe that as long as we approach the problem with an open mind and work with the people in the development of our solutions and courses of action, that we will achieve a positive outcome that the people can own," Warrington said.
"We are probably not going to be able to solve all the problems we are confronted with in the short time we are here," he continued.
"However, it is important to me that we leave this a better place than we found it. If everyone adopts that point of view, then pretty soon improvements and progress will take on their own inertia.
Once that happens it will become very difficult for terrorists and other enemy forces to sustain a foothold in this country."
| Date Taken: | 01.21.2005 |
| Date Posted: | 01.21.2005 10:45 |
| Story ID: | 891 |
| Location: | TAJI, IQ |
| Web Views: | 42 |
| Downloads: | 13 |
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