Kuwait’s government has decided to lift fuel subsidies and apply new water and electricity consumption prices, while postponing an official announcement, until the Ministry of Commerce and Industry designs an effective plan to monitor prices amid fear of inflation, well-informed sources told Kuwait Times.

The move will expand partial elimination of the diesel and kerosene subsidies from early 2015.

According to Arabian Business, the Kuwaiti government is also considering fiscal reforms to be able to implement its 2016 national budget. It ponders to introduce VAT and a business profit tax, and adopt measures to standardize pay across the public sector. Nonetheless, based on Fitch Ratings’ estimates, Kuwait’s financial prospect was considered good, despite falling oil prices.

Kuwait has one of the lowest fiscal breakeven Brent oil prices among Fitch-rated oil exporters at $48 per barrel, the agency said, adding that the country’s assets base will reach $472b (or 377% of GDP) in 2015/2016.