Middle East

Kuwait has no plans to raise gasoline prices

Kuwait: Government sources said the Cabinet’s subsidy committee had no recommendations on its agenda to raise the price of gasoline. He added that he has no plans to consider recommendations from international rating agencies to raise gasoline prices as part of fiscal reforms to improve Kuwait’s budget.

According to sources, the subsidy committee is under the supervision of the Treasury and has submitted recommendations to increase or decrease subsidies to maintain prices and not hurt consumers, with Kuwaiti housing allocated. You need to build a parcel. Sources say KNPC will not need to raise fuel prices, at least in the near future, as it will be able to supply enough fuel at its current price and will not affect its work or available budget.

However, among the Gulf countries, gasoline prices remain the cheapest in Kuwait. Only a few years ago, in the oil-rich United Arab Emirates, fuel was cheaper than bottled water. Currently, there is a long line outside the gas station on the eve of the monthly price increase. Fuel prices of major OPEC producers, set according to global oil price benchmarks, have skyrocketed by more than 70% since Russia’s invasion of Ukraine, with neighboring oil countries that are subsidizing gasoline. Emphasizes the difference.

At around $ 1.23 per liter after the July price hike, UAE’s unprecedented fuel costs were achieved in the United States and the United Kingdom as the war in Ukraine unleashed the biggest commodity shock in decades. It is below the strict record. However, the citizens of the region have long considered cheap fuel as their innate right. In Kuwait’s luxury welfare state, the cost per liter is almost a quarter.

Due to increased pressure last week, the UAE and Saudi Arabia have allocated $ 13 billion in social spending for low-income citizens. This is an option that is clearly not available in the region’s less wealthy economies, such as Egypt and Lebanon, where bread prices are soaring and starving. is spreading. In the United Arab Emirates, where foreigners outnumber locals by almost 9 to 1, raising fuel prices is the most costly for an army of workers in Africa, the Middle East and South Asia that support the economy.

Inflation has already reduced workers’ salaries slightly. Other Gulf Arab countries have also curtailed state interests in recent years to balance their budgets. But fearing a backlash from angry consumers, no one has gone to the UAE, where fuel prices are nearly double the average of the Gulf Arab countries.

According to experts, the country can also avoid the burden of 9 million foreign residents. Meanwhile, in Saudi Arabia, a country of 35 million people, two-thirds of which are citizens, government fuel price caps continue to curb inflation despite soaring food costs. The small Emirati population benefits from a generous welfare state that supports everything from free education, health care and housing, marriage grants, scholarships to foreign universities, and high-paying government jobs. ..

The deal appeared throughout the region when the state received cash from the oil boom and distributed a portion of the prize money to its citizens. Last week, United Arab Emirates President Sheikh Mohammed bin Zayed al-Nahyan plans to double state social support for low-income Emiratis families classified as families with monthly incomes of less than $ 6,800. Announced. The $ 7.6 billion package covers 85% of recent fuel price hikes and 75% of food inflation, including housing allowances and support for job seekers. The government portal crashed because it received so many applications.

In Saudi Arabia, the world’s second-largest oil producer, King Salman has announced a direct cash transfer of $ 5.33 billion to citizens “to protect beneficiaries from the effects of rising global prices.” But that help doesn’t reach those who need it most. Despair for living expenses is increasing among low-wage migrant workers in the region.

Uber drivers and food delivery riders who pay their fuels in Dubai say they are almost unbroken. In opposition to the United Arab Emirates ban on labor protests, riders from two major delivery companies went on strike in May over their small salaries. Uber said it would raise fares by as much as 11% on some trips to explain the new gas rates in Dubai, but some drivers say that’s not enough. -agency

https://www.kuwaittimes.com/kuwait-has-no-plans-to-increase-petrol-prices/ Kuwait has no plans to raise gasoline prices

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