Kuwait approves 83% petrol price increase

Kuwait’s cabinet has approved petrol price increases of up to 83 per cent beginning on September 1 under economic reforms designed to reduce the impact of low oil prices.

A statement from the weekly cabinet said prices will rise by 41 per cent for low octane fuel, from 60 fils to 85 fils, by 61 per cent for high grade petrol, from 65 fils to 105 fils, and by 83 per cent for low-emission ultra petrol, from 95 fils to 165 fils, according to Kuwait Times.

The new prices aim to put Kuwait in line with other Gulf States, where fuel subsidies have been reduced across the board in the wake of lower oil revenues.

Bahrain, Oman, Qatar, Saudi Arabia and the UAE have all liberalised fuel prices or increased them dramatically.

The petrol price increase is the first increase in almost two decades in the country and follows the liberalisation of diesel and kerosene prices in the country in January 2015.

The country’s cabinet plans to revise the cost of petrol every three months based on international oil prices, similarly to the current monthly revisions seen in Oman and the UAE.

Read: UAE to save Dhs 9.1bn by slashing fuel subsidies

Kuwait previously approved measures to increase electricity and water prices paid by foreign residents and businesses but chose to exempt citizens.

The country posted an $18.3bn budget deficit last year and is projected to post a deficit of $29bn in the current 2016/2016 fiscal year.

There is speculation that the price increases will raise rates for commodities and services in the country, according to the publication.

Kuwait Times also said activists has launched a campaign against the hike on Twitter, while others argued it should only apply to expats.

Read: Top 10 Countries With The Cheapest Petrol Rates