KUWAIT CITY, Jan 2: In anticipation of prices hike that may arise out of the fuel price increase in the country, Minister of Commerce and Industry (MoCI) Dr Yusuf Al-Ali affirmed that the sector has given instructions to the commercial monitoring and control department to study prices of all commodities in the market before and after the fuel price increase, reports Al-Jarida daily.

In a statement, Dr Al-Ali indicated the step is aimed at identifying artificial increase in commodity prices, and “there are tough penalties in place if the ministry records any violation in that regard in the entire commercial sector”.

The minister pointed out that liberating subsidies on fuel brands “super” and “ultra” in the course of January 2016 will not have any direct effect on the prices of consumer commodities because it doesn’t involve kerosene and diesel, which are the main fuel used in production sectors.

He added the price increase on individual type of fuel will only cause slight price difference, indicating ultra fuel will be sold for KD 0.110 to KD 0.120 as expected, and Finance Ministry through its concerned department will discuss recommendations made in this aspect in coordination with the international financial consultant company, Ernst & Young. Meanwhile, the Ministry of Finance via its Twitter account affirmed that the sector is in the stage of reforming budget balance, and measures adopted will have positive outcome in the short and long term for continuity of the life of luxury for citizens.

He also said recent news about the current economic measures taken by government targeting citizens is untrue, adding “the procedures aim to reorganize and redistribute subsidies to be able to provide and cater for the needs of citizens who deserve it.”