Kuwait explores fuel subsidy reforms; Expats and companies may face higher prices
Proposals under review could align Kuwait’s gasoline prices with global rates
Dubai: Kuwait may soon see a shift in its gasoline pricing policy, potentially liberalising prices for expatriates and companies while possibly excluding Kuwaiti citizens with driving licenses from this change.
The government is currently studying various concepts to reform fuel subsidies and better target them to those who need them most.
One proposal under review suggests that partial liberalisation of gasoline prices could result in significant savings, potentially around 600 million dinars if prices were aligned with global rates. This change could also influence traffic patterns across the country.
No final decisions yet
The Ministry of Finance is still examining all proposals, and no final decisions have been made yet. The proposals are part of the Cabinet’s effort to rationalise subsidies and ensure they are directed effectively.
Among the options considered is the full liberalisation of gasoline prices to reflect global rates. This would affect all consumers, including expatriates, companies, and potentially citizens.
The government is mulling providing alternative support to Kuwaiti citizens to mitigate the impact of potential price increases.
The exact mechanism for delivering this support to citizens has not yet been determined. For expatriates and companies, gasoline prices would align with global rates, while support for Kuwaiti citizens could be linked to having a driving license. The final concepts will be presented to the Cabinet for further consideration and action.