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Gas cylinder likely to cost KD 2.5 to KD 5 in near future
August 17, 2016, 8:56 am
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The committee in charge of reviewing the governmental subsidies has been studying a proposal to increase the cost of cylinder of liquefied petroleum gas.

Sources explained that one of the suggestions is to increase the cost by six times while another is to increase it by three times its current cost. The committee conducted a  study in this regard and discovered the state bears about KD 4.25 of the actual price of KD 5 for each cylinder of gas irrespective of whether these cylinders of gas are being used in homes, shops or restaurants.

The committee also discovered that the total subsidy spent by the government for cylinders of gas is KD 60 million every year. These facts have led the committee to consider revising the current price of a cylinder of gas which is 750 fils each.

The sources said the final suggestion is to increase the cost of a cylinder of gas from 750 fils to KD 2.5 which will save about KD 25 million a year for the state. However, Kuwait Petroleum Corporation has suggested completely lifting the subsidy of gas cylinder such that each cylinder of gas will cost its actual price of KD 5.

The sources said relevant analysis were carried out to discover that the use of cylinders of gas by citizens and expatriates is about 10-15 percent each while 70 percent of the cylinders of gas are used by restaurants, shops and hotels.

They insisted that it is unacceptable for the state to bear such  a high cost in favor of commercial companies as the latter should be paying the actual price of the cylinders of gas, stressing that the subsidy should be directed to only those who deserve it.

The sources disclosed that majority of the members of the committee are considering the cost of KD 2.5 per cylinder  adding that some of the members are thinking of preparing a proposal to exclude private houses from paying KD 2.5 for each cylinder as they are keen to ensure the subsidy is given to those who deserve it.

However, Kuwait Times quoted the finance ministry who denied the price hike as a rumor. The Ministry mentioned that it is mulling over the change in subsidies and working on redistributing them in a way that it does not have a strong impact on middle-and limited-income groups. 

 

Source: Arab Times and Kuwait Times

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