Iraqi cabinet allocates US$800 million for fuel imports

Motorists line up for gas in Baghdad.

BAGHDAD, Iraq Iraq, a country with some of the largest oil deposits in the world, is in the odd position of actually having to import oil to solve a fuel shortage.

The Iraqi oil minister on Tuesday announced that the government will spend US$800 million to import oil products during the rest of the year.

Despite the fact that Iraq has the world's third largest proven oil reserves, it is currently suffering from an acute shortage of gasoline, kerosene and cooking gas.

In the capital, cars often have to line up at gas stations overnight to get what little fuel is available. The shortage means people suffer through hours-long power outages during the day, spoiling food stored in the refrigerator and making it difficult to sleep without air conditioning in the hot Iraqi summer.

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