Raising fuel process helped Kuwait make $1.2 billion surplus in two years

KUWAIT: Kuwait achieved financial surplus of $1.2 billion in two years, as the annual surplus is estimated at $600 million based on the price of oil barrel at $60. The surplus in the budget became possible after Kuwait raised gas prices in September 2016 by reducing subsidies on fuel prices, and reducing incentives for government officials. Furthermore, the country seeks the implementation of selective tax next year, under the commitment to reduce the state’s deficit in the 2018/2019 fiscal year which is estimated at KD 7 million. Kuwait’s Ministry of Commerce and Industry Undersecretary Abdelghaffar Al-Awadhi had stated that raising oil prices, considering that average price of oil remains at KD 40 per barrel, will save KD 120 million during the first year of implementation.