A letter has been circulating via social media purportedly from KNPC on the new pricing for diesel and kerosene. The new prices are nearly double triple the current prices and will go into effect starting from January 1st. The letter does not mention if gasoline prices are going to increase so I guess we’re fine for now.
59 replies on “Fuel Prices will Triple”
Yeah…its tripled…
my maths skills are top noth
..just like your spelling skills š
Too funny
I c what you did there.. o_O
this will increase the cost of commodities and hence living cost will be more expensive !
Firstly, Kuwait has been on a 70’s grid, which is ridiculous, so prices for electricity, petrol, water have not increased for decades. Kuwait should increase the petrol price gradually, because the repercussions of such a extreme increase will probably upset the public and this will not be a good idea. They should analyze, for once, the effect of their decisions on the public instead of making a rash decision like this, sometimes it is not advantageous to be lazy.
They haven’t increased the prices for decades coz there was no need to.
The govt make enough revenue through oil. there is no need to increase the prices. atleast not to target a certain class of people by removing the susidies.. which means the expats are gonna have to shed out more money coz the locals will still be getting fuel at subsidised rates.
I’ve seen lots of letters like these circulating the internet for various issues. I doubt its real.
My problem -and every body else- with such a move is merchants…
Just see how they will increase prices for everything because of this
Instead of adding the difference in transportation cost per whole shipments they will add per item, suddenly we will find big price difference, way more than government one, with nearly zero monitoring…
Instead of adding the difference in transportation cost per shipment will eventually result in price of each and every item in that shipment , so any increase in any costs be it fuel, rent, labor or anything thing will result in the cost and therefore the selling of that shipment.
Seems my description was misleading a bit
I’ll put it in an example here:
– A fisherman who usually fill tank with 10 KD have now to fill it with 30 KD. Instead of adding 20 KD to the whole things he got, the actual increase will be between 40 to 60 KD…
The example is a typical situation where a merchant will take advantage of price increase to get more revenue in excuse of gas prices. I saw that back in Lebanon during gas price increase over the years.
Whats better? if gas prices fall, other prices will never fall again…
Well it’s still going to be cheaper than where I’m living š
from my experience with Kuwait Ministries and KNPC,almost all letters are sent in Arabic, and rarely in English.
Your experience fails you.
I work in the Oil & Gas industry and this memo is 100% genuine.
Your experience is probably outdated .. or your just spitting bs .. all the memos on my desk are in English .. and since I work at KNPC, this looks very real and genuine
I work in oil and gas HQ and most memos are in arabic, and internal memos are bilingual . So hes not too far off the mark. I even get alot of arabic only memosso dont need to be too harsh..
YESSS!
FINALLY!
I can’t wait for fuel prices to triple
This is very good, the government is finally cutting down on subsidies
Does this include the normal fuel? the written is only Kerosene & Diesel.
what is “normal” fuel? I’d classify Kerosene and Diesel as “normal” fuels. Toilet paper would be an “abnormal” fuel.
Say hello to double digit inflation rates, although the mark up on essential food items such as wheat flour, sugar, cooking oil etc are already 50-70% and above in some cases thanks to unethical traders and unnecessary numerous links in an already elongated supply chain marred with intermediaries who play no role yet get a penny for every sip of tea they consume –
THIS WILL HURT.
Sometimes I feel that the revised prices are just out of someone’s whims and fancy like pulling a number out of thin air and bam!, a memo gets sent out. What’s really surprising is that there has been a downward trend in global oil prices and commodity gurus expect them to further dip below till the $76.00 mark / per barrel and stay till the next round of recession (2015), like we see today in Japan and Germany (England is almost on the threshold), China had low output for October ’14, November and December aren’t looking any promising either.
BTW: Benzene shall follow, so shall electricity & water.
eh?
The prices of diesel and kerosene in Kuwait are the cheapest in the whole region. Kuwait been suffering because most of the fuel being illegally exported to Saudi Arabia, Iraq and elsewhere.
Let gasoline, electricity and water follow. They’re heavily subsidized anyway.
Nothing will change. This is not an increase in “actual” fuel price. It is just an increase in what the consumer pays.
It was earlier being subsidized by the government, i.e you pay a fraction, the government pays a fraction.
Now the government decided to have you pay the full price. Rightly so in my opinion.
Nope, still subsidized. But now the prices will be inline with the rest of the region.
Fuel prices might be going down, but the proposed price will still be lower or closer to what the world pays for fuel.
What we should expect is an another increase in prices food, shipping, delivery, etc. Someone has to pay the increae in fuel and that someone is you.
Its smart enough to read between the lines. The letter doesn’t mention anything about petrol/gasoline. So we’ve nothing to worry about. But let’s look at it one step further.
Rise in diesel / kerosene is directly proportional to the yield applied on commodities such as our FMCG in majority countries. Simple commodities such as an aerated beverage may jump upto 200 fils. However, an oil rich country may still sustain such direct impact on their citizens because high revenues and low amounts of citizens. But can it be questionable if this decision is because of the barrel rate dropping?
The barrel rates has nothing to do with this. The government had been planning this for the past three or four years. There is a large package of policies that they’ve been trying to pass over the past few years but they struggled with public consent. The oil prices drop is a good opportunity to achieve public consent or at least justify their actions.
As I said earlier… fuels, electricity and water are already heavily subsidized. I see no reason why beverage companies should receive free electricity, water and subsidized fuels. Sure a can of cola can increase by 200 fils, but it will still be 700 fils cheaper than almost everywhere else in the world.
they can include colas in the subsidized food items that the citizens get here
Reducing food subsidies is part of their package as well.
Yay! To that and it’s about time too. The Govt has shown grit and courage
to remove fuel subsidies and hats off to them for it. Only trouble is they should have doneit when oil prices were soaring not when oil price is having a free fall with global crude down 30% thus far this year.
inshallah, this would mean fewer cars over the weekends jay driving the road networks in Kwt.
Prepare to see huge lines until the end of December with people over-stocking and then zero customers for Diesel and Kerosene in January š
Btw, what vehicles use Diesel in Kuwait?
Land Rover Defender is one.
Trucks and Trailors mostly!
I’m so surprised to see so many people supporting this!
man this is crazy.. triple???
as if the rents were not high enough!!!
what happens if the prices of petrol gets tripled? 20KD for a full tank? š®
half the people in Kuwait has salaries less than KD 300.. these hikes are just gonna make things crazy!!!
Low fuel prices are terrible for congestion, pollution, overuse of resources. Fuel should not be free. Same with water, electricity. Look at people’s drivers flooding the streets with water to wash a single car – if they increase the water price you can bet he’ll stop doing that.
Don’t be shortsighted and think of yourself, resources are not strictly for your generation to use
+100000 well said
Yeah… very well said..
question… the subsidies are lifted only for expats or for locals as well?
and if the subsidies are lifted for locals, will the locals be getting some sort of coupons to get doscounts or will they be paying the same prices like the expats?
i understand that the resources are not for one generation to use.. but then think of the inflation this price hike will bring. things will get expensive but the salaries will remain the same. May be the workers in Govt will get a raise but i doubt anything in provate sector is gonna change.
+1
If Kuwait is starting to increase the price of fuel, you really have to wonder…
The last rate increases (ie: 45 to 65 fils for Petrol) happened back in the 1990s.
Saudi Arabia still has the cheapest fuel in the region, even lesser than the 60-65 fils we pay here. I recall a few years back when their King actually ordered prices to be DECREASED.
Their gasoline is of less quality i believe hence the lower price.
its subsidized more than us nothing to do with quality
Better quality? Who tasted it?
So Kuwait will be the only place on earth where Diesel is more expensive than Gasoline. The whole point of having a diesel engine is the price of fuel. I guess we’ll be seeing all the new trucks and equipment with gasoline engines from now on. So silly, like everything here.
Actually Diesel is more expensive than petrol in UAE.
Diesel is always more expensive than petrol in the US, all the way from the east to the west coast.
Great news! Now do ot for petrol as well so that we will see fewer cars on the roads.
Why are some people cheering on this? your living cost has just increased by 30% keep on cheering boys!!
that’s not how it works, mate
go on then please explain?!
If prices triple…
You can say a 200% increase.
or you can say the price is 300% of the old price.
But 30% higher? Where did u learn math?
Sure, if diesel is what you live on..
OMG people think the living cost is realated to fuel more than anything else!!
1)
All bakeries and factories are on diesel
2)
most trucks are on diesel (food suppliers, construction etc.)
3)heating systems are all dependent on diesel
ans much more to answer your question we are pretty much living on diesel
So you are saying, if my living costs were KD2000 per month, now that would be KD2600 after the increase? I was just pointing out your statement was wrong, no doubt the increase has a bigger effect than just fuel for transport.
Wow!!
What a difference in opinion.
I agree a marginal increase is justified for Fuel, water or Electricity, because these are the 3 elements that are being
misused.
But then again, kuwait is known to change its policies over night. so for how long do you think that the “Unsubsidized Fuel” approach is going to last?
Talking about electricity…..I believe factories and places that are commercially rented out, such as offices, pharmacies,restaurants as well as hotels need to be charged higher for electricity and water due to extended / Long hours of use and not rental apartments. If you come to think of it, most people are at work during the mornings till evening, which implies electricity and water is not used as much.
or..you pay based on your meter reading with the electricity prices remaining the same. Simple!!!
Well what ever the authorities come up with, i only hope its rational and sensible. coz “Majority” of the time it isn’t no matter what the subject is.
Prices are going up! Good. Between the hike in rent, fuel prices and possibly utility as well; cost of living can increase by as much as 50%. Awesome! Now all we need to do is get a raise and adjust wages/salary levels. If there is no downturn in economy things should all settle down within 2 years. If there is a boom which is highly possible despite nay-sayers get ready for astronomical salary possibilities.
In short, you better start practicing your sad face because its time to be like Oliver Twist and ask for more.
Kerosene is jet fuel and all the regional airlines have been increasing their flights to Kuwait and eating up the market with huge demands and cheap fuel. Its the first step for Kuwait Airways to recover its share of the market with other airliners thinking twice about cheap refueling in Kuwait as we gradually get our new aircrafts. Great news!
why is everything always about the poor expats
Car fuel = Gasoline
Diesel & Kerosene are fuels for trucks and different motors.
ignorance is the problem š