The Kuwaiti government announced this decision on August 1, 2016. The price hike is part of economic reforms aimed at countering falling oil revenues.
These are the first increases in heavily subsidized petrol prices in Kuwait for almost two decades. The Cabinet said that even with the new increases, the subsidy on petrol has not been completely lifted.
The government committee will revise the new petrol prices every 3 months depending on international oil prices.
In September an environmentally friendly low-emission “ultra” petrol will increase by 83 % to $0.55 a liter.
Kuwait’s cheapest gasoline will increase in price by 41 % from 60 fils (20 Cents) a liter to 85 fils (26 Cents). Its mid-range fuel will go up by 61 % from 65 fils (21 Cents) to 105 fils (35 Cents). That puts the new prices at 321 fils ($1.06) a gallon for the cheapest fuel and 397 fils ($1.30) a gallon for mid-range.
Kuwait is the last country among the energy-rich Gulf Cooperation Council states to increase the price of petrol.
Other GCC members – Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates – all have increased their fuel prices over the last year as crude prices plummeted.
Worldwide oil prices now sit around $40 a barrel as inventories remain high and the global economy remains mired in a malaise.