Kuwait Considers Potential Petrol Price Hike
Kuwait: The Kuwaiti Ministry of Finance has presented a proposal to the Council of Ministers regarding a potential reevaluation of government subsidies on petroleum products, particularly gasoline. This proposal is currently under review by the Ministerial Committee for Economic Affairs. It could lead to adjustments in gasoline prices at the pump.
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The Ministry of Finance’s plan advocates for a comprehensive review of various state subsidy programs. This review would encompass an examination of gasoline pricing structures, potentially resulting in price modifications.
The proposal outlines a potential increase in gasoline prices by up to 25 fils per liter. Under this scenario, The price of Premium 91 gasoline could rise from its current 85 fils per liter to 105 fils per liter. This adjustment is estimated to generate targeted annual savings of approximately 6.2 million Kuwaiti dinars for the government. The price of Super 95 gasoline could also see 25 fils per liter increase, climbing from 105 fils per liter to 130 fils per liter. These adjustments are anticipated to yield projected annual savings of about 4.5 million dinars.
The Kuwaiti government is currently evaluating the Ministry of Finance’s proposal. The Ministerial Committee for Economic Affairs is responsible for analyzing the proposal, considering its ramifications. Also making recommendations to the Council of Ministers.
The final decision regarding potential fuel price hikes rests with the Council of Ministers. Transparency and communication with the public are likely forthcoming as the government weighs the economic implications and potential impact on citizens before reaching a final verdict.
This proposal reflects the Kuwaiti government’s ongoing exploration of strategies to ensure the long-term financial sustainability of fuel subsidy programs. The outcome will likely be influenced by a thorough analysis of economic factors. Also a consideration of potential social and economic consequences, reported Al Rai daily.
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