Tom Delare, economic counselor at the U.S. Embassy, says the massive subsidies that keep gas and heating oil at artificially low prices in Iraq also create a huge incentive for smugglers who simply take Iraqi gasoline or kerosene out of the country, bring it right back in, and sell it at much higher import prices.

NPR: Iraq Oil Minister Vows to Fight Corruption, Smuggling

Mr. THOMAS DELARE (U.S. Counselor for Economic Affairs, U.S. Embassy, Baghdad): Well, it's a shame the last government, the Jafari government, did not do this.

NPR: Iraq Oil Minister Vows to Fight Corruption, Smuggling