Kuwait Petroleum Corp chief said subsidies will be phased out gradually
Kuwait is considering several options for energy subsidy reforms but any possible rise in domestic prices would not impact citizens' livelihood, the chief executive of state oil firm Kuwait Petroleum Corp has said.
Nizar al-Adsani said "the Kuwaiti government is currently studying several options for addressing the budget deficit amid weak crude oil prices. Among those options was a review of petroleum products in the domestic market", according to an official statement.
This will be done in coordination with the parliament to agree on a mechanism "taking into account the standard of living of citizens", he added.
"The Kuwait government gives huge subsidies. Subsidies will be taken out gradually... In the first quarter of 2016, probably there will be something on subsidies on gasoline and kerosene," Adsani said earlier during a panel discussion at an energy industry conference in Abu Dhabi.
Kuwait has said it is considering subsidy and spending cuts to save money as low oil prices push state finances into the red.
Kuwait expects the actual 2015-16 budget deficit to be between 5 and 6 billion dinars ($16.5-$19.8 billion), the Finance Ministry said last month, lower than the 8.18 billion dinars the Gulf oil exporter was projecting previously.