Dammam-Kuwaiti Government on Monday approved to remove subsidy on gasoline, in a step that aims at rationalizing expenses to cope with fiscal difficulties resulting from the decline in oil revenues.
This procedure coincided with the anniversary of the Iraqi occupation of Kuwait on August 2. The Kuwaiti cabinet on Monday decided to raise petrol prices by more than 80 percent from September 1.
The new prices will be as follows: Octane-91 will be sold for 85 ﬁls per liter from 60, Octane-95 will be sold for 105 fpl from 65 and the Ultra-Premium will be sold for 165 fpl from 95.
The Kuwaiti Cabinet said a government committee will revise the new petrol prices every three months depending on international oil prices.
In April, parliament approved a government-sponsored bill to raise electricity and water prices paid by foreign residents and businesses, but exempted citizens.
Kuwait is the last country among the energy-rich Gulf Cooperation Council states to increase the price of petrol.
Other GCC members — Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates — have either completely liberalized fuel prices or raised them substantially because of the sharp fall in oil income since mid-2014.
Kuwait has posted a budget deficit of $18.3bn in the past fiscal year, according to provisional figures, following 16 years of windfall due to high oil prices.
It is projecting a deficit of $29bn in the current 2016/2017 fiscal year.
The emirate is home to 1.3 million native citizens and around three million foreigners.