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Tuesday , September 27 2022

Increase in fuel price affects delivery businesses in Kuwait – ‘Hike in fees for delivery a necessary measure’

This post has been read 3438 times!

KUWAIT CITY, Oct 26, (KUNA): The fuel price hike had impacted the standards of living in Kuwait with many people paying double or triple to “fill the tank”. Owners of delivery businesses said that the decision, approved by the cabinet last August, had led them to increase delivery fees from around 15 to 35 percent. In separate statements to KUNA, the owners said that their fleet of vehicles travelled all around Kuwait, delivering goods and food which in turn meant that their cars consume more fuel. Head of a local delivery company, Mohammad Faisal said that his business was wholly dependent on fuel, revealing that the increase in the price had led him to hike delivery fees to around 30 percent.

“Most companies increase fees to around 25 to 30 percent,” said Faisal, adding that the money was used to refuel delivery cars so that business would continue to flow. He affirmed that the increase in fees was a necessary measure, otherwise his business would incur losses. Faisal added that delivery services would not be the only ones affected by the hike because most of the small and medium-sized enterprises were depending on delivery businesses to sell their products.

On his part, owner of a local restaurant, Mohammad Abdullah said that the decision to increase the price was a normal outcome due the retreating price of oil. “The restaurant was forced to increase delivery fees … it is the only way to cover our losses,” said Abdullah who added that some other businesses were barely making it due to the price hike.

It would be necessary to establish an authority that would figure out the best way to ensure that business owners and their employees would not be heavily affected by the current status quo, suggested Abdullah, adding that paying more for the fuel and food material would lead to more pressure on delivery services and restaurants.

Al-Harth Al-Hajri, another delivery business owner, affirmed that businesses were not the only one suffering from the fuel price hike, saying that consumers were also to be considered. “Our businesses will have to increase fees to cover the losses, but the consumers will also feel the effect because delivery is more expensive … the service was meant to make things easier to manage; however, it seems that things will change now,” said Al-Hajri.

The cabinet issued a decree last August to increase fuel price as of September by 85 fils for the Premium, 105 fils for the Super, and 165 fils for the Ultra.

The Ministry of Commerce had issued a decision last April to keep restaurants delivery fees at 250 and 500 fils for local and outside areas deliveries.

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