Motorists in Iraq are experiencing much the same shock over gasoline prices as Americans felt in the summer of 2005. Percentage-wise, it's even worse, as the Iraqi government raised prices by a factor of 8 at the end of 2005. Motorists endured spot shortages, early closings, and kilometer-long waits for fuel. Sound familiar?

That's the bad news. The good news is Iraqi gas is now only about 50 cents a gallon. But more costs are in the offing, as Iraq raises prices further to reach equilibrium with the average price in the Persian Gulf states: about 90 cents a gallon. The IMF (International Monetary Fund) told Iraq it has to stop subsidizing fuel prices in order for the IMF to forgive the bulk of Iraq's $120 billion foreign debt.