Kuwait explores fuel subsidy reforms

Kuwait may soon see a significant shift in its gasoline pricing policy, with the government considering partial liberalisation of prices for expatriates and companies, while potentially excluding Kuwaiti citizens with driving licenses from this change.

The government is exploring various proposals to reform fuel subsidies, aiming to better target them to those who need them most.

One of the proposals under review suggests that aligning gasoline prices with global rates could lead to substantial savings, estimated at around 600 million dinars. This change might also have an impact on traffic patterns across the country.

However, no final decisions have been made yet. The Ministry of Finance is still evaluating all proposals as part of the Cabinet’s broader effort to rationalise subsidies and ensure they are distributed effectively.

Among the options under consideration is the full liberalisation of gasoline prices, which would affect all consumers, including expatriates, companies, and possibly citizens.