The Government Committee chaired by the Undersecretary of the Ministry of Finance Khalifa Hamada has given nod for the study concerning government subsidies, reports Al- Rai daily.
The chairman said the recommended increase in the electricity tariff for the housing sector should be three to six times, except for the units that consume less than 6,000 kilowatts per year and expected the committee to submit the proposal to the Ministers Council Sources said according to the proposal, the section that consumes between 6,000 and 10.6 thousand kilowatts per year will pay 6 fils per kilowatt, which means the price will increase three fold from the current cost which is just 2 fils per kilowatt, while the section that consumes 10.6 thousand kilowatt and above will pay 12 fils per kilowatt, which means the price will increase 6 times than the normal price.
He also disclosed the suggested prices are still less than the price paid by the state even after the collapse of the price of oil.
This is in addition to taking into consideration the social and economic impacts in a manner that it will not lead to a huge inflation that could be out of control. The price of diesel and kerosene is expected to cost 140 fils per liter in the local market at the beginning of February 2015, reports Al-Rai daily quoting sources.
The same sources said the price of kerosene and diesel in the international market was more than 210 fils per liter when the Cabinet was preparing to increase the price of local diesel and kerosene from 55 fils up to 170 fils.
However, the price declined internationally in the past few years and a liter of kerosene cost just 160 fils. However, the Cabinet met to tackle this issue and Kuwait Petroleum Corporation (KPC) is expected to initiate an appropriate mechanism to identify the price of kerosene and diesel at petrol stations.
Moreover, KPC is expected to review the price at the end of January 2015 to in line with international prices.