A parliamentary-governmental agreement to lift the government subsidy on petrol and diesel will be approved soon, which will effect the expatriate community in Kuwait who make up two thirds of the population, with most paid less than KD 200 a month, with an increase of 25 to 30 percent for petrol prices. Legislative and executive authorities are studying a mechanism to allow Kuwaitis to access a certain amount of subsidized fuel based on their level of consumption.

The parliament and government seem to agree in principle on the need to remove subsidies on fuel, which could go into effect within 4 months pending the two sides’ ability to come up with a mechanism to protect Kuwaiti citizens from the repercussions of this decision, local reports says.

According to media report, the government has informed the lawmakers that the decision will end ownership of about 200,000 vehicles by expatriates who will not be able to drive their cars in line with the new mechanism. According to them, private Transport Sector may compensate the expatriates through the development of services for them not to resort to ownership of private cars just because petrol is cheap.

“If the operation is successfully implemented, the next step would be a gradual removal of electricity subsidies,” local Medias reported.

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