The Kuwaiti newspaper Al-Qabas quoted a government source as saying, “There is a government intention to increase gasoline prices to reach the global market price.”
However, this increase will not be imposed on everyone, but only on foreigners and visitors. As for Kuwaiti citizens, the government will provide them with financial support for fuel consumption, to spare them from bearing any increase in prices.
When this decision is implemented, the foreign resident in Kuwait or the visitor will pay 4 times the price of a liter of gasoline paid by the Kuwaiti citizen, as stated in the “Shabakat” program broadcast on the Al Jazeera “360” platform.
The population of Kuwait is about 4.9 million people, more than half of whom are non-Kuwaitis, with a total of 3.3 million residents and 1.5 million Kuwaitis.
Kuwaitis and residents interacted on social media with this decision, and an episode (9/29/2024) of the “Shabakat” program recorded some comments.
Abu Othman said, “This is not an increase. This is a float. This means that instead of subsidizing prices for everyone, it will be for the citizen only.”
Khaled commented on the issue, saying, “Basically, most of the expatriates use public transportation. The price of oil does not make much difference to them. Those who have a car are often sponsored by their employer.”
As for Abu Youssef, he wrote, “The gasoline they reduced is gasoline per liter only… and its price originally changes every 3 months… and this type of gasoline is not in high demand because its price is originally expensive and is used for modern and luxury cars.”
Saber considered that raising oil prices for expatriates means an increase in the prices of everything in Kuwait, and said, “A step that causes the greatest harm to the citizen.”
For his part, he told Habib, “It is better for prices to be unified to prevent exploitation, price manipulation, or fraud from sales stations, and to give the citizen specific monthly support in return for that.”
Economic contraction
Gasoline prices have not yet been raised in Kuwait. According to Al-Qabas newspaper, they are currently under study and will be presented to the Economic Affairs Committee, indicating that the decision is expected to be adopted soon.
Kuwait is one of the world’s most oil-producing countries, as it occupies sixth place globally in the list of cheapest gasoline prices.
It is noteworthy that the International Monetary Fund expected the Kuwaiti economy to contract by 1.4% during the current year, in light of the decline in global oil prices.
The budget for the current fiscal year expected a decline in revenues by 4.1% to $61 billion, including a decline in oil revenues by 5.4% to $53 billion. It is also expected that a budget deficit will occur, amounting to $19 billion.
According to the presenter of the “Shabakat” program, for these reasons mentioned, the Kuwaiti government aims to reduce public spending by 6.6%, and “the decision to increase gasoline prices is part of it.”
