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New Gas price justified, Halliburton CEO says

Houston's Halliburton Co. went on the offensive Friday, disputing allegations the company overcharged for trucking gasoline into Iraq.

Company officials scrambled to rebut criticisms leveled by some influential House Democrats, who had accused the prime contractor responsible for bringing fuel into Iraq of gouging American taxpayers.

[...]

Halliburton subsidiary KBR, formerly known as Kellogg Brown & Root, had been paid more than $304 million as of Sept. 18 to import nearly 192 million gallons of fuel from Kuwait to Baghdad.

That worked out to an average fee of $1.59 a gallon, the lawmakers said.

Tack on the return of 2 percent to 7 percent the company is allowed to earn under the contract and the price tag ticks up to somewhere between $1.62 and $1.70 a gallon.

Between April and September, the lawmakers noted, gasoline was selling on the wholesale market in the Middle East for about 71 cents a gallon. That meant KBR was charging between 91 cents and 99 cents a gallon to truck in the fuel.

The lawmakers consulted with some energy industry experts, who estimated KBR should be able to bring in the fuel for somewhere between 10 cents to 25 cents per gallon.

[link|http://www.chron.com/cs/CDA/ssistory.mpl/business/2164766|link]
lincoln

"Windows XP has so many holes in its security that any reasonable user will conclude it was designed by the same German officer who created the prison compound in "Hogan's Heroes." - Andy Ihnatko, Chicago Sun-Times
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New Shocked, truly.
Is there anyone out there who doesn't know that this foray into Iraq was a Cheney/Halliburton affair?
bcnu,
Mikem

The soul and substance of what customarily ranks as patriotism is moral cowardice and always has been...We have thrown away the most valuable asset we had-- the individual's right to oppose both flag and country when he (just he, by himself) believed them to be in the wrong. We have thrown it away; and with it all that was really respectable about that grotesque and laughable word, Patriotism.

- Mark Twain, "Monarchical and Republican Patriotism"
New More details -
This line jumped out at me...


The memo includes a caveat that costs for delivery and particularly distribution could add greatly to the total price of fuel imports. And Halliburton has argued that the costs of its imports are high because it "incurs costs for transportation, storage, distribution, quality assurance and labor required to manage the operation." Halliburton also implied in its statement last week that security concerns contributed to the $1.59-a-gallon cost of gasoline.

American taxpayers foot most of the bill; Iraqis pay 4 cents to 15 cents a gallon at the pump.
[link|http://www.nytimes.com/2003/10/22/business/worldbusiness/22hal.html?pagewanted=print&position=| NY Times ]
New Yep.
"incurs costs for transportation, storage, distribution, quality assurance and labor required to manage the operation."


If Iraqi's are paying 4 to 15 cents/gallon, sort of makes you wonder how much Halliburton is paying the station operators, doesn't it?
bcnu,
Mikem

The soul and substance of what customarily ranks as patriotism is moral cowardice and always has been...We have thrown away the most valuable asset we had-- the individual's right to oppose both flag and country when he (just he, by himself) believed them to be in the wrong. We have thrown it away; and with it all that was really respectable about that grotesque and laughable word, Patriotism.

- Mark Twain, "Monarchical and Republican Patriotism"
     Gas price justified, Halliburton CEO says - (lincoln) - (3)
         Shocked, truly. - (mmoffitt) - (2)
             More details - - (Simon_Jester) - (1)
                 Yep. - (mmoffitt)

Well, I should say!
201 ms