The Committee for Government Subsidy has issued a decision to increase the price of diesel and kerosene to KD 0.120 per liter instead of the current KD 0.110. The new price is due to take effect on June 1, 2015, reports a local daily. It is the first time the committee headed by the Undersecretary of Finance Khalifa Hamada has come to a decision to increase the price of diesel and kerosene since the Government settled on cutting down subsidies on both products.
In early February, the Government increased the price of diesel and kerosene from KD 0.055 to KD 0.170 per liter, and in the following month it was reduced to KD 0.110 at the start of implementation of the monthly price review system, wherein it needed to endorse either the international market price or KD 0.170 in terms of low-cost.
Last month, the committee decided to maintain the price of both products at KD 0.110, which was against the recommendation of Kuwait National Petroleum Company (KNPC) to increase the price to KD 0.120 in line with the international market price, but the current raise is based on the noticeable price improvement of crude oil.