Decision to raise prices of fuel pushed back six months report of the international consultancy firm Ernst & Young is finalized, as regards the implementation of comprehensive economic reform. In a press statement, reliable oil sources said that some official authorities received circular to stop talking about increasing or reducing subsidy on oil products until the general budget for 2016/2017 is prepared.

The circular indicated the current electricity tariff will be sustained, adding the recent proposal by a minister in that regard was applauded by Cabinet while other ministers agreed on it; stressing that concerned authorities will be notified about the decision.

On the justification for government’s rescinding its decision to raise fuel prices, sources said a number of lawmakers threatened to grill the Deputy Premier and Minister of Finance, acting Oil Minister Anas Al-Saleh on the pretext that increasing fuel prices could burden citizens with limited income. MP Fares Al-Otaibi was among the lawmakers who openly declared his stance in that regard.

Meanwhile, sources did not rule out the possibility of some private companies and establishments, especially those in automobile import and sale, mounting pressure on government out of fear that the removal of subsidies could affect the sale of vehicles, particularly those that consume fuel heavily.

They said the decision coincided with the period Kuwait Petroleum Corporation (KPC) and the Ministry of Electricity and Water concluded separate reviews of prices in case of raise and the rate of estimated revenue.

KPC came up with more than an alternative for the prices of oil products, which has not been disclosed. Ministry of Electricity and Water Undersecretary Mohammad Bushahari revealed that the ministry presented a study that categorizes consumers into classes, where the highest class will be paying six times the current price of electricity without it affecting low income earners.

In a recent forum on electricity consumption, Bushahari declared the first category will enjoy full subsidy by paying 2 fi ls per kilowatt and 800 fi ls per 1,000 gallons of water, which are the current prices. The second category will pay 4 fils per kilowatt and the highest category 12 fils per kilowatt, which is six times higher than the current price “and all this will become a reality if the proposal with the Council of Ministers is implemented”. He added the new billing system for private buildings will be different from investment, commercial and recreational buildings.

 

SOURCE : ARABTIMES

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