MCI, KOTC move to protect subsidized LPG from abuse
Kuwait cracks down on black market gas trade; gas cylinders for homes and businesses to be separated under new rules
The Ministry of Commerce and Industry, in coordination with the Kuwait Oil Tanker Company (KOTC), has launched an expanded regulatory effort to tighten control over the domestic gas and fuel market and combat the misuse of state-subsidized goods.
The campaign aims to curb practices such as reselling household-subsidized gas cylinders to the commercial sector at inflated prices, a move that drains public funds and poses safety risks.
As part of this effort, Ministry of Commerce inspectors will expand their monitoring scope to include cooperative societies and central markets, ensuring that petroleum products are used in line with regulations and in a safe manner.
Proposals under discussion include banning the import, distribution, and circulation of liquefied petroleum gas (LPG) cylinders and accessories unless imported directly by KOTC, as well as separating cylinders intended for commercial use — such as those used in restaurants, hotels, and central kitchens — from those reserved for households.
KOTC officials reported that some private companies licensed to distribute gas have been exploiting subsidies by buying cylinders at reduced prices and reselling them to commercial customers, in violation of Decree-Law No. 10 of 1979.
In response, KOTC suspended the monthly quotas of offending companies, though violations continue through purchases from cooperative branches.
The officials stressed the importance of withdrawing unapproved gas cylinder accessories circulating in the local market, which pose safety hazards. They called for stricter inspections, penalties, and the allocation of 25 kg cylinders specifically for commercial establishments, leaving smaller cylinders exclusively for household use.
According to Kuwait Petroleum Corporation data, the two LPG filling plants in Shuaiba and Umm Al-Aish produced 17.9 million gas cylinders in fiscal year 2024–2025, a 3.15% increase from the previous year. Of these, 16.65 million were 12 kg cylinders for home use, while LPG consumption rose to 204,010 metric tons.
Officials stressed that these regulatory steps are essential to protect lives and property, raise safety standards, and safeguard public funds from exploitation.
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