Kuwait ends diesel subsidies
Tuesday, 10 June 2014
The Kuwaiti government has decided in principle to end subsidies on diesel fuel but will deal with any negative impacts on consumers before implementing the decision, the cabinet said.
Last month, the OPEC member's government warned that spending outpaced revenues and this could lead to a budget deficit in 2017/2018 after years of surpluses.
"The council of ministers has decided in principle to stop subsidies on diesel," a statement said late Monday.
But the cabinet is waiting for a study by the higher planning council on ways to deal with possible negative effects on consumers.
Oil Minister Ali al-Omair told parliament three weeks ago that ending subsidies on diesel would save around $1 billion a year out of total subsidies of around $18 billion.
Diesel is currently sold at around $0.20 a litre, according to AFP.