The Kuwait Parliament is reportedly prioritising the proposal to lift the subsidisation of petrol for expatriates and reduce subsidies on electricity despite mixed support from MPs, it was reported.
MPs have called for more analysis of the proposal, with some warning it could lead to the revival of a black market.
Head of Finance Committee MP Faisal Al Shaye said such subsidies depleted government funds, Arab Times reported.
MP Abdullah Al Tamimi insisted that removing subsidies for 2.8 million expatriates in the country would help the country save hundreds of millions of dollars, as well as control traffic congestion.
Currently, Kuwait spends around 47 fils to produce one kilowatt of electricity, which it sells to consumers for just 2 fils.
If the subsidy is lifted an expatriate would have to pay 22 times the current rate for power consumption, meaning a current KD25 ($88.9) per year power bill would rise to KD550.
In many cases, expatriates currently do not pay the electricity bill, as their electricity and water charges are included in their monthly rent. However, the removal of electricity subsidy could lead to changes in their rental contracts and installation of an electricity meter in each apartment, the newspaper reported.
If the petrol subsidy is removed it would cost 2.5 to three times the current price, driving up an annual KD200 petrol bill to KD500-600.