I haven't heard these reports on such prices, but it wouldn't surprise me at all. With their economy still in tatters and Iraq in the middle of reconstruction, you'd have to be an abject fool not to think that many of the necessities and basics are NOT being subsidized by the US.
Here's a surpise

: This will continue to exist for quite some time, either on our own terms or with the UN taking it over.
If people want the $0.05/gallon gas that's being sold in Iraq, by all means, by an airplane ticket, drive across the Kuwaiti border, don your flack jacket and get some friends that know how to handle an AK-74 to guard your ass while you fill up.
Me? I'll gladly pay $2.00/gallon, just so I don't have to risk getting my ass shot at every time I need to fill up...
Finally:
Iraq has been worth our efforts. Even though the missteps in intelligence will more than likely cost Bush his re-election, we've removed a threat in the region and to the US. The hunt for missing WMD is still ongoing, as there are tons of materials still unaccounted for. Hussein's gone; he'll never return to power. This is bad how? The place is getting rebuilt, albeit with some delays and difficulties (what does one expect with ex-RG insurgents still running around blowing things up?). Iraq isn't a pretty place right now; it's getting better, though.
I've been outside the US a few times this year already; I certainly didn't get any hatred towards me or my nationality; quite the opposite. You knee-jerk, slobbering Neanderthals that think and constantly espouse that the US is universally hated need to put up or shut up, as you quite simply don't know what you are talking about and are equating headline news to some semblance of the truth. I'll wager most that believe and shout this have NEVER been outside the US borders...
Few countries fall over themselves greeting us, but few outright hate what we represent. Just because a few European entities (who are reviled within the EU themselves for their strongarm tactics in governing) really can't stand to see the US politically slap them down in the UN and make their stand on foreign policy totally irrelevant doesn't translate that we are hated across the globe.
There have been some idiotic maneuvers put foward by this administration, but telling France and Germany to sod off wasn't one of them and nor was invading Iraq. The planning should have been a HELL of a lot better on the post-war piece, but getting Hussein out was something that Bush, Sr. should have done. The foreign policy under Bush, Jr., which admittedly focuses on security more than international coddling has shown RESULTS. Iran is on the hot-seat about their nuclear aims. Libya has dropped ALL of their WMD aspirations and is looking to rejoin the civilized world. N. Korea has been strangely silent as of late (wonder why?). Furthermore, how much of the high-level infrastructure of Al-Qaeda have we gutted? Over half, I believe?
All of this in under 4 years...