KUWAIT, 1st August, 2016 (WAM) — The Cabinet endorsed on Monday a plan to “start rationalizing fuel subsidies where the prices will be restructured in harmony with the average rates” in the other member states of the Gulf Cooperation Council (GCC).
The ministers, during the weekly session, were briefed about recommendations presented by the economic affairs committee with respect of a proposal by the committee charged with revising various kinds of State subsidies, on setting fuel prices, KUNA said on Monday.
They approved the commission recommendation and decided to begin “rationalizing subsidies for benzene in the country, as part of the Government reform scheme where the fuel products’ prices will be restructured to be in harmony with the average rates in the other GCC states.
“The new pricing policy will be in effect as of 1st September 2016 in line with the policies adopted in the GCC countries.” The new prices are as following: Octane-91: 85 fils per liter, Octane-95: 105 fpl, Ultra-Premium: 165 fpl.
The new prices have been set after examining global rates.
Kuwait is the last GCC State to embark on “restructuring the fuel prices,” however the new ones remain the lowest among the Council countries, as well as globally.
Moreover, the Cabinet has tasked a special commission to re-examine the State subsidies and the fuel prices every three months, to be in harmony with the global rates.