Court finds fuel hike ‘unlawful’ – ‘No wage cuts’

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KUWAIT CITY, Sept 28, (Agencies): A Kuwaiti court on Wednesday said the government decision to increase petrol prices was unlawful nearly one month after it took effect in the country. The court said the decision “breached the law” because of procedural flaws, according to a copy of the verdict obtained by AFP.

It said the price hike should have been approved by the Supreme Petroleum Council, the country’s highest oil decisionmaking body.

The court, whose rulings can be contested, however rejected another request to suspend the hike immediately, before the high courts have issued their verdicts on the matter. This means the new increased petrol prices, which went into effect on Sept 1, will remain in place until the appeals court issues its verdict.

The supreme court is the highest in the country and its verdicts are final. The price hike, ranging from about 40 to 80 percent depending on the type, met stiff opposition from lawmakers and activists when introduced following a slide in oil revenues. It was the first such increase since 1998.

Wednesday’s ruling was based on a petition filed by lawyer Nawaf Al-Fuzai who insisted that the hike should have been issued in “a bill from Parliament and not from the Cabinet”. The development came after Kuwaiti lawmakers on Thursday requested an emergency session of Parliament to debate the price increase.

In their motion, lawmakers said the move had resulted in a rise in the prices of commodities and goods. Parliamentarians want the government to compensate Kuwaiti citizens who comprise around 30 percent of the 4.3 million population, which also includes about three million foreigners.

The Cabinet has said the decision is part of a series of measures to meet a budget deficit due to a sharp drop in oil revenues, which previously made up around 95 percent of the country’s total income. The country liberalised the prices of diesel and kerosene in January 2015 and revises them monthly. Other oil-rich Gulf states had already raised fuel and electricity prices.

In April, Kuwait’s Parliament approved a governmentsponsored bill to raise electricity and water prices paid by foreign residents and businesses, but exempted Kuwaiti citizens. Kuwait recorded a budget shortfall of KD 4.6 billion ($15.3 billion) in the fiscal year which ended on March 31.

It was the first shortfall since the fiscal year to March 1999. Meanwhile, the Ministry of Finance on Wednesday categorically denied reports on social media about purported government’s intention to slash payments.

The official spokesman of the Finance Minister, Khaled Al-Rubaiaan, said there is no government’s intention to review or cut payments or allotments for the civil servants, at present.

He indicated that revising the payments “will be applicable to citizens to employed after endorsement of the strategic alternative (scheme).” Al- Rubaiaan added that the re-examination of the payments’ scale would be aimed at hiking salaries of those who are underpaid as compared to others who perform the same job and get higher salaries.

The State reforms’ scheme does not include a program to trim the salaries and is actually aimed at ensuring welfare for the citizens by tackling “sources of excessive spending.”

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