• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 20 hours America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 12 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Kuwait To Increase Fuel Prices By Up To 80 Percent In September

Kuwaiti energy customers will see an up to 80 percent rise in fuel prices on September first, according to an announcement made by the national cabinet on Monday.

The move comes as part of economic reforms designed to combat falling oil revenues. The measure will increase the price of low-octane petrol by 41 percent to 28 cents a liter, the price of high-grade petrol by 61 percent to 35 cents a liter and the price of environmentally friendly “ultra” petrol by 83 percent to 55 cents a unit.

The increases are a first for the OPEC member in almost twenty years. The Kuwaiti government has historically subsidized oil prices in order to market its products as economical.

Kuwait represents the last country in the Gulf Cooperation Council to increase the price of oil, though the nation had liberalized its energy pricing model in January 2015, allowing rates to be changed on a monthly basis.

Other GCC countries, including Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates, had liberalized their pricing model in mid-2014 due to the sharp dip in oil revenues since the price crash that year.

Kuwait’s new prices will be subject to review every three months, and may be adjusted depending on the ups and downs of international oil prices, according to the cabinet’s announcement.

A government-sponsored bill to increase electricity and water prices for foreigners residing in Kuwait passed the parliament in April. The country now houses 1.3 million natives and 3 million foreigners.

The bill, the first of its kind in nearly five decades, will go into effect September 2017.

Earlier this month, Bloomberg named Kuwait as the second most affordable place for homeowners to satisfy their energy needs. The per-gallon price of oil stood at 88 cents, in a country where the average daily wage stands at $68.69.

In total, Kuwait’s residents spend just 1.27 percent of their wages on gas, according the business news site’s calculations.

ADVERTISEMENT

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News