BAGHDAD, Dec. 1 (UPI) -- Iraqi police are focusing more attention on fuel smugglers who are raking an estimated $700 million a month from the Iraqi economy.
Iraq Directory reports two trcks full of illegally gotten kerosene were confiscated from smugglers by police in Basra in the past two weeks.
Police also recently busted smugglers as they were moving fuel from truck to ship in a southern Iraqi port. Two police officers and five alleged smugglers were killed in the ensuing gun battle.
"The most dangerous challenges faced by Iraqi Ministry of Oil are the smuggling of oil derivitaves and terrosim," said Assem Jihad, spokesman for the ministry. "This affects the economy of the country and hinders the development."
He said $700 million is taken from the economy each month because of such smuggling. Smugglers make money by sending it to foreign ports and re-selling it to Iraq at higher rates.
Iraq's oil infrastructure is hurting bad in the war conditions. Attacks are hurting upstream operations and, along with electricity shortages, refineries are unable to process enough petroleum products to meet Iraqi demand.
The Parliament has recently approved an $800 million supplement for paying for imported petroleum products, which are sold to Iraqis at below cost.
