The committee in charge of reviewing various types of subsidies from government to Kuwaitis will soon review 11 subsidized items, noting the government until now has taken a decision on diesel, kerosene and aviation fuels only, reports a local daily.
The daily quoting a source noted the committee is planning to collaborate with Kuwait Institute for Scientific Research (KISR) to study the effects and implications of lifting subsidy from 11 items. He said the review will determine the decisions and recommendations to be made in that regard.
He stated the committee will be more careful in making recommendations, considering reactions that followed the removal of subsidy from diesel and kerosene, as it caused an uproar within the government, public and economic circles. He indicated “it is necessary to consider all perspectives before taking any action, stressing the removal of subsidy from diesel led to hike in prices of some products and services while some companies suspended production”. He explained the outcome made government to rescind the decision of lifting subsidy on diesel to avoid negative implications.
He emphasized that KISR will carry out an extensive study on the effects of subsidy removal from diesel and kerosene. He observed that the Council of Ministers previously fixed six months for reviewing the effects of subsidy removal before a final decision is made.
He listed the remaining eleven items the government is planning to study shortly and cited fuel for operating the electricity and water plants, ration food supply and construction materials, payment of school fees and scholarships as contained in the budgets of PAAAET and Kuwait University, and rent allowance allocated in the Public Authority for Housing Welfare’s budget. It also includes overseas medical treatment, expenses on handicaps at the Public Authority for Disabled, housing loan waiver in the budget of Bank of Credit and Loans, interests on housing loans in the aforementioned bank, Financial assistance to sporting clubs and activities, financial support for farmers and fishermen, and marriage grants allocated in Credit and Savings Bank.
Meanwhile, Al-Shahed newspaper stated that some experts in oil strategies said the prices of crude oil depend on demand and supply factors. The experts believe the indices favor the stability of oil prices in the medium-term, such that the prices could stand at $70 at the end of 2015 and early 2016. They ruled out the possibility that prices could reach $100 as in the past, because the economy in Europe, Japan, China and India are recovering at a slow pace. This is in addition to the rise in demand and global reservoirs apart from the outcome of other policies.