Repercussions tied to increase in fuel prices worry expats in Kuwait – Govt urged to intensify control on market

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KUWAIT CITY, Aug 5: The Cabinet’s decision to increase the prices of fuel by the beginning of September has caused anxiety among expatriates who have emphasized the fact that the problem is not the price hike per se but its repercussions, reports Al-Anba daily. In an interview with the daily, several expatriates expect the fuel (benzene) price hike to result in higher prices of other commodities and services.

They appealed to the government to review its decision or even reconsider the increment rates which will negatively affect the basic needs of the citizens and expatriates; given that the price of a liter of Super increased by 62 percent, Regular by 42 percent and Ultra by 83 percent. Adel, one of the expatriates, said various governments, not just Kuwait, decided to increase fuel prices amid the falling oil prices in the global market. He pointed out the only complication is how the government will deal with the increase of consumers goods and services. He said some traders will definitely take advantage of the situation to increase the prices of commodities and services.

He then called on the government to intensify control on the market and impose severe penalties on those who will manipulate the prices to earn higher profits. He suggested the government should take gradual steps when it comes to increasing fuel prices, taking into consideration the financial situation of families – whether the citizens or expatriates.

Affect
Another expatriate, Mahmoud, asserted the fuel price increase will also affect the real estate market as rents are also expected to soar, although the current rental fees are already high. He added it would have been better if the government looked for alternatives to the fuel price hike, such as expediting construction of the metro and improving the public transportation sector to lessen dependence on personal vehicles.

Moreover, Ibrahim Sayyed disclosed he decided to sell his wife’s car for the family to use only one car in a bid to reduce expenditures. He lamented the expatriate families are burdened with several financial obligations, which come in the midst of the government’s intention to increase the health insurance package for expatriates and fees for services. Under such circumstances, it has become more financially feasible to send the family back home and this has become the better option for a large number of expatriates in Kuwait, he added.

He reiterated that the government should improve public transportation and establish new transportation routes which link various parts of Kuwait, such that public transport becomes an acceptable alternative to protect the people from the exploitation of taxi owners. He is optimistic though that the decision will be reviewed in order to reduce the price hike percentage, because Kuwait is a benevolent and generous country.

Finally, Abu Ahmad asserted the expatriates will never disagree with decisions taken in the interest of Kuwait. In fact, the expatriates support the government’s decision to boost the local economy, he stressed. Nonetheless, the expatriates urged the government to regulate the market as the prices of consumer goods and services are expected to increase in view of the fuel price hike. They stressed the need for tighter control in order to protect the consumers from the claws of greedy traders.

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