Fuel price increase being considered
Kuwaiti authorities are considering reviewing fuel prices as part of reducing state subsidies, Arabic daily Al Rai reported.
The review is being done in order to cut subsidies and direct them to those who best qualify. Concerned authorities are studying various scenarios regarding the prices of fuel and gasoline, the paper reported.
One such scenario will be that a partial subsidy of gasoline prices Kuwait could save about 600 million dinars if sold at global prices, a move that would also reduce traffic in the country.
It was quoted that all the proposals are still under review by the Ministry of Finance without a final decision. Proposals presented will be submitted to the Cabinet which would consider rationalizing the process of providing subsidies to those who best qualify, either subsidizing gasoline prices partially or fully, or an alternate solution.
Sources explained that the proposal for the total subsidy of gasoline prices is based on sale at global prices, and this would apply to all categories of consumers, citizens, residents and companies, provided that the state compensates citizens with support in another way, for the increase that may occur as a result of the difference between the current price and the subsidized price.
