Proposed gasoline price changes could save 600 million dinars

KUWAIT CITY, Aug 12: The country may see a shift towards liberalizing gasoline prices for expatriates and companies, potentially excluding citizens with driving licenses from this change. This potential policy change is currently being studied, the government is working on a plan to reform subsidies and better target them to those who need them most.

The study includes various concepts for adjusting fuel and gasoline prices. One proposed scenario suggests that partial liberalization of gasoline prices could save tens of millions in subsidy costs, with potential savings reaching around 600 million dinars if prices were aligned with global rates. This change would also impact traffic patterns in the country.

Sources indicate that all proposals are still under review by the Ministry of Finance, and no final decisions have been made. These proposals are part of the Cabinet’s broader effort to rationalize subsidies and ensure they are directed to those who qualify. Finalized concepts will be presented to the Cabinet for further action, which may include either partial or full subsidy removal or other solutions.

One proposal under consideration involves fully liberalizing gasoline prices to match global rates. This approach would apply to all consumers, including citizens, residents, and companies. However, the state would provide alternative support to citizens to offset the potential price increases resulting from this change.

While the proposals suggest that support would be available only to Kuwaitis, the exact mechanism for delivering this support has not yet been determined. The sale of gasoline would follow global price rates for expatriates and companies. The scope of support for citizens could include those with driving licenses, but this will depend on the outcomes of the study and subsequent approvals.