Iraqis frustrated with miles-long gas lines

Frustrated Iraqis trying to tank up their cars faced miles-long gas lines on Tuesday - a stark reminder that a country with one of the world's largest oil reserves still has major challenges delivering fuel to its people.

	Iraqis frustrated with miles-long gas lines
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The queues followed Iraq's announcement Monday that it was opening six major oil fields and two natural gas fields to development by foreign firms, which could lead to the biggest outside stake in Iraq's oil industry since it was nationalized more than 30 years ago.

The government hopes these contracts will boost oil production by 60 percent from levels that are already the highest since the U.S.-led invasion in 2003. Enhanced production would provide additional resources to rebuild Iraq's infrastructure and deliver services to the people.

But the gas lines snaking nearly 2 miles (4 kilometers) down the streets of Baghdad on Tuesday show it will take a lot more than money to translate record oil prices and increased production into concrete improvements in the quality of life for the Iraqis.

Iraq's Oil Minister Hussain al-Shahristani has said the country expects to reap revenues of US$70 billion by year's end if world prices remain high. Oil prices exceeded US$143 for the first time ever on Monday and show few signs of falling.

But sectarian strife, rampant corruption, lack of adequate refineries and inefficient government institutions limit the positive impact that increased public revenues could have on average Iraqi citizens like Habib Hadi, who queued up for gas at 4 a.m. Tuesday.

After waiting more than four hours, he said he finally edged close to the gas station and "saw a catastrophe."

"The gas pump was not working because of the lack of electricity," Hadi said.

Fuel and electricity shortages increase hardships in Iraq in the summer, when temperatures soar well above 100 degrees Fahrenheit (38 Centigrade), making life uncomfortable without air conditioning.

The government continues to have problems providing regular power, and many rely on gas-run home generators for electricity.

The official price for a liter of gasoline in Iraq is about US$0.38 (450 Iraqi dinars). But the black market price, which has risen significantly in recent days, can be almost three times that amount.

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