Panel recommends market fuel prices, no companions on overseas treatment

KUWAIT: The government committee entrusted with studying ways to reduce the cost of subsidies recently recommended lifting fuel subsidies and selling it at market prices from February.

The committee also recommended cutting down the treatment abroad expenses by limiting the state-paid cost for the patient alone without any companions.

The committee, comprising of elements from relevant ministries, approved all the recommendations made by international advisor Ernest & Young concerning reducing subsidies paid for 12 goods and public services. According to the study, putting these recommendations into practice would make petrol prices jump from 60-65 fils to 100 fils per liter, which is equivalent to current international gasoline prices, that are already the lowest in 11 years.

The recommendations also included gradually lifting subsidies paid for agricultural activities, a recommendation to which many of the committee members showed some reservations on grounds that agriculture was a productive sector that does not even get much subsidies anyway.

Speaking about electricity subsidies, the committee also had reservations about lifting subsidies and setting different prices according to consumption rates. Committee members agreed that this would need a special legislation. The committee also decided reducing diesel and kerosene prices to 100 fils per liter by the beginning of January. —Al-Rai