WASHINGTON, Oct 18: The Bush administration is asking Congress to approve about $200 million more than necessary to buy gasoline, kerosene and other petroleum products for the Iraqi people, according to a congressional analysis.

A review by the Congressional Research Service concluded that the administration’s request for $900.6 million to purchase petroleum products to be used by Iraqis next year is too high, based on oil product prices in the region.

If the request is only for commodity fuel purchase at spot market prices, it would seem that the (Coalition Provisional Authority) is asking for substantially more money than is called for by current fuel prices in the Persian Gulf trading area, said the study, a copy of which was obtained by Reuters.

The money to buy the oil products is included in the administration’s $87 billion aid package for Iraq that Congress is considering.

The study on the oil product purchases, which was dated Oct. 8, was prepared for the Senate Energy and NRC.

The Congressional Research Service, an arm of the US Congress, said the cost to buy the oil products based on spot market prices in the Gulf is about $704 million.—Reuters