Kuwait getting tough on subsidies
Government agrees in principle to lift subsidies on diesel.
Kuwait has agreed “in principle” to lift subsidies on diesel sold at the pump in what could be a prelude to cutting back on power and water subsidies.
The cabinet decided in its weekly meeting to implement the findings of a special committee into the impact of removing the subsidies, according to state news agency KUNA.
The decision is pending the outcome of a study by the higher planning council into the possible negative effect of removing the subsidies which cost the government around $18bn last year and are rising at over 20% per year.
Removing diesel subsidies would save an estimated $1bn per year, Oil Minister Ali al-Omair said three weeks ago.
Kuwait is also revising subsidies on electricity, water and petrol, currently sold at well below cost.