Kuwait fuel cost rise was unlawful

KUWAIT CITY // A Kuwaiti court ruled yesterday that a government decision to increase petrol prices was unlawful.

The court said the decision, which took effect on September 1, “breached the law” because of procedural flaws, and that the price increase should have been approved by the Supreme Petroleum Council, the country’s highest oil decision-making body.

However, the court rejected a request to suspend the price increase before the high courts have issued their verdicts on the matter.

The price rise, which ranged from about 40 to 80 per cent depending on the type of petrol, was the first since 1998 and met opposition from MPs and activists.

Yesterday’s ruling was based on a petition filed by lawyer Nawaf Al Fuzai who insisted the increase should have been issued in “a bill from parliament and not from the cabinet”. Kuwaiti MPs requested an emergency session of parliament for today to debate the price increase and the impact it has had.

In their motion, they said the move caused a rise in the cost of commodities and goods. MPs want the government to compensate Kuwaiti citizens, who comprise about 30 per cent of the 4.3 million population.

The cabinet said the decision was to help meet a budget deficit caused by a sharp drop in oil revenues, which had made up about 95 per cent of the country’s income.

Kuwait liberalised the prices of diesel and kerosene in January and revises them monthly.

In April, Kuwait’s parliament approved a government-sponsored bill to raise electricity and water prices paid by foreign residents and businesses, but exempted Kuwaiti citizens. The Opec member recorded a budget shortfall of 4.6 billion dinars (Dh56.1bn) in the fiscal year that ended on March 31.

It was the first shortfall since the fiscal year ending in March 1999.