Kuwait plans to raise the prices of gasoline to 73% by September in light of the oil price decline affecting the energy-rich Gulf state’s finances, Reuters reported.
The price for the ultra gasoline grade would increase to 165 fils a liter, up from 95, the super grade gasoline price will boost to 105 fils from the current 65, and the premium grade price is to amount to 85 fils from 60, Trade Arabia reported.
Kuwaiti Finance Ministry Undersecretary, Khalifa Hamada, declared in 2015 that “rationalizing” subsidies would save the government $8.7b over three years.
Meanwhile, Gulf neighboring oil-exporting countries are cutting off subsidies for fuel, public utilities, and food, and reducing the growth of public sector salaries as they try to limit big budget shortages caused by low oil prices. Saudi Arabia, the UAE, Qatar, Oman, and Bahrain have all taken such decisions in recent months.
In 2015, the UAE increased the price of Octane 95 gasoline by almost 25%, while Qatar raised domestic prices of gasoline by 30%.