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How Militants in Mosul Make Huge Profit by Selling Oil at Skyrocketing Prices

© AP PhotoIraqi security forces and allied Popular Mobilization Forces fire rockets at Daesh positions at an oil field outside Beiji, some 250 kilometers (155 miles) north of Baghdad, Iraq, Saturday, Oct. 24, 2015
Iraqi security forces and allied Popular Mobilization Forces fire rockets at Daesh positions at an oil field outside Beiji, some 250 kilometers (155 miles) north of Baghdad, Iraq, Saturday, Oct. 24, 2015 - Sputnik International
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In the wake of the operation to liberate the Iraqi province of Nineveh from Daesh terrorists, Iraqi troops found papers which pointed to the illegal sale of stolen petroleum by the militants at extremely high prices. Sputnik Arabic spoke to a local resident about this discovery.

According to the papers which were found in a hideout, each member of Daesh was given 20 to 75 liters of gasoline, which they then sold to the local residents.

The documents often pointed to one man named, Abu Rahma who was allegedly behind this illegal distribution of oil amongst Daesh.

The oil was stolen in the city of Kayara, east of Mosul or in the Syrian province of Raqqa. Since, the Iraqi army liberated Kayara in August all the oil trade by the militants now was finished.

© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul

The quality of the fuel was very low and according to one local resident, the oil had an acrid unnatural odor.

“In order to recoup their losses, the terrorists put a very high price on the oil. One liter of this smelly white colored liquid, which is more similar to kerosene than gasoline, costs $4. It means that an average fuel canister can cost up to $90 and there is no alternative as the fuel is only sold by Daesh,” local citizen told Sputnik Arabic on account of anonymity.

© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul
© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul

He further said that in Mosul a barrel of oil costs $600, while global prices do not exceed $60.

According to the civilian, a five-minute taxi ride costs $5, an incredibly expensive price for the local citizens of Mosul.

© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul
© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul

Furthermore, electricity in the western part of Mosul occupied by Daesh is produced by small power generators that run on kerosene. Due to the scarcity and high cost of fuel, city dwellers now use electricity only from 5 to 9 pm or from 6 to 9 pm.

© Sputnik / Nazek MuhammedOil prices in Mosul
Oil prices in Mosul - Sputnik International
Oil prices in Mosul

“Residents of the city are suffering and waiting for arrival of the Iraqi Army,” the local resident added.

The operation to liberate Mosul from Daesh terrorists has been ongoing from October 17. There are several Iraqi law enforcement agencies together with air support of the international coalition led by the United States are putting their efforts to free the occupied territories.

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