Kuwait’s government has cut the prices of diesel and kerosene after facing fierce criticism against its earlier decision to introduce fuel price hikes.
On 1st of January the government raised the price of diesel at wholesalers and filling stations by $59 cents per litre and increased the prices of kerosene.
The changes were made in a move to reduce the financial pressure from fuel subsidies to the state budget amid the fall in oil prices and drop in state revenue.
KUNA news agency estimated that diesel price reform would save the government around $1bn a year.
Earlier this week, the finance ministry projected a budget deficit of $28bn for the next fiscal year starting in April.
However, the new prices of diesel and kerosene were heavily criticised by some members of parliament, who argued it was unfair to consumers.
After the controversy over the diesel subsidy reform, Oil Minister Ali al-Omair said early this month that the government had decided to postpone any removal of subsidies from petrol, electricity and water, Reuters reports.
On Wednesday, state refiner Kuwait National Petroleum Co (KNPC) cut diesel and kerosene prices back to 0.110 dinar, effective from 1st of January, KUNA reported.
It quoted KNPC spokesman Khalid al-Asousi as saying that from now on, domestic prices of the fuels would be reviewed monthly according to developments in the global markets.
KNPC will continue to supply certain parties, including those with very large demand for the fuels, at the old, subsidised price of 0.055 dinar, he said.
