One of the posts in my Kurdistan travelogue concerned Iraq’s acute gasoline shortage. It baffled me then and still does. But this extensive piece in the NYT is the best treatment of the issue that I’ve seen.

Once thought to be only a tool for insurgents to undermine the government, the pipeline attacks have evolved into a lucrative moneymaking scheme for insurgents and enterprising criminal gangs alike. Ali Al Alak, the inspector general for the Oil Ministry, said the attacks are now orchestrated by both groups to force the government to import and distribute as much fuel as possible using thousands of tanker trucks.

In turn, the insurgents and criminal gangs — distinguishing among them has become increasingly problematic — have transformed the trucking trade into a potent tool for smuggling.

[…]

[A]s much as 30 percent of imported gasoline is promptly stolen and resold abroad by smugglers, according to American and Iraqi officials. The shortfall is part of what forces Iraqi families to spend more on fuel from the black market, where it is far more expensive than from legal outlets.

The poisonous blend of smuggling and sabotage is yet another blow to the economy of a country whose huge oil reserves were expected before the 2003 invasion to pay for its reconstruction.

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