KUWAIT CITY, Aug 24: The price of diesel and kerosene will increase by five fils to become 110 fils per liter in September, reports Al-Nahar daily quoting a source from the Subsidy Committee at the Ministry of Finance.
According to the source, the prices of premium fuel (91 octane) will remain at 85 fils per liter and super fuel (95 octane) at 105 fils per liter; while the price of ultra fuel (98 octane) will be 165 fils per liter.
The source disclosed that prices will increase in the coming period because many commodities and services depend on diesel and kerosene. He said the price of construction equipment might increase as well since diesel is an important element in this industry.
Meanwhile, sources from the Ministry of Finance revealed it is expected that the country will save about $500 million (KD150 million) every year as a result of the fuel price hike last year.
Besides increasing fuel prices, the State is also contemplating on imposing value added tax (VAT) and selective excise tax as part of its economic reform strategy which is aimed at addressing the budget deficit caused by the continuous decrease in the price of oil in the international market since July 2014.