Minister warns off fuel-fed price rise – ‘We’re watching’

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KUWAIT CITY, Aug 30, (Agencies): Minister of Commerce and Industry Dr Yousef Al-Ali affirmed on Tuesday that enforcing new fuel prices as of September 1 would not “affect prices of all basic commodities.” Any unjustified bid to raise the commodities’ prices in the foreseeable future “will be met with firm measures by the ministry inspectors,” he said explicitly warning wholesale and retail merchants and businessmen against hiking products’ prices at the pretext that fuel costs have become bigger.

In Al-Seddeeq district alone, the inspectors issued 372 citations related to trade fraud, expiry date and unreasonable hike of the rates, he said. “Till this moment, there has been no significant raise of the (necessities’) prices, except for some cases,” he added, re-affirming violators have been referred to the commercial prosecution.

The ministry staff, including those entrusted with trade supervision and consumer protection, have been working diligently to withstand the drastic hike of basic products’ prices. He urged citizens to call the hotline, 135, to report any breaches. Fuel stations across the country witnessed congestion as consumers rushed to fill up before the decision to increase gasoline prices — 40 percent for Premium, 60 percent for Super and 80 percent for Ultra — takes effect on Thursday.

In an interview with the Al-Seyassah, several citizens and expatriates expressed disappointment over the decision, while stressing the need to review this step because of its negative impact on consumers with limited income. A vehicle owner who used to spend KD 18 monthly for gasoline will pay more than KD 30 once the decision is implemented.

Citizens and expatriates decried the decision of the government, asserting the authority should diversify sources of national revenues instead of touching the pockets of people with limited income.

Osama Al-Bader, a citizen, lamented “the increase in gasoline prices was exaggerated. It would have been better if the increase was 10 percent and then it can be increased gradually, let’s say five percent next year, so those with limited income will not feel the brunt of the huge difference in prices. This increase will worsen the miseries of the people.”

Another citizen, Abu Ali, pointed out the decision will also lead to indirect increase in the prices of goods and services. For example, a teacher, who tutors our children for KD 10 per hour, will increase the cost of his services.

The same applies to plumbers and others who come to repair things in our homes, he asserted. Saoud Al-Hamad, also a citizen, reiterated the decision will reflect on foodstuffs especially since traders will take advantage of this situation to raise their prices. He stressed the State should not put additional burden on the shoulders of limited income earners, indicating even the money that the government will save after this increase will not add much to the public treasury. He said the government is supposed to diversify sources of national income by establishing industrial cities, implementing commercial projects and expanding the tourism sector.

Zakaria Said, on the other hand, revealed that his monthly car fuel expenses will shoot up from KD 20-KD 25 to more than KD 40 or over KD 480 per year. He wonders how the expatriates will cope with the mounting financial pressure which includes health insurance, residency renewal, apartment rentals and school fees among others

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