KUWAIT HAS THE CHEAPEST FUEL PRICES IN WORLD

  • 12/09/2022

Kuwait City : The government subsidy for fuel in Kuwait is a contentious issue, with studies calling for subsidies to be lifted in order to increase the state's budget resources and insistence on continuing to pay international price differences to support citizens. According to a statistical study, Kuwait is one of the cheapest countries in the world in terms of selling price of fuel (gasoline - diesel), with the average sale of a litre costing 95 fils, compared to 185 fils in Saudi Arabia, 175 fils in Qatar, 335 fils in the UAE, 135 fils in Bahrain, and 445 fils in the United States of America and 700 fils in the United Kingdom. It is well known that the low price in Kuwait is due to the government's assistance to all consumers, citizens and expatriates, allowing them to benefit from the lower price. 


According to the figures, the annual cost of fuel (gasoline – diesel) is about 976 million dinars, while the selling price is about 651 million, which means that the difference exceeds 300 million dinars. The difference between Kuwait and other countries widens significantly when compared to the revenues from selling fuel. 

If Kuwait sells for about 652 million dinars per year, Saudi Arabia sells for 973 million, Qatar for 1.15 billion, and Bahrain for 976 million, raising the value in the UAE to about 2.23 billion, 4.6 billion in the UK, and 3 billion in the US. Given the demographics, in which citizens account for only about 30% to 70% of residents, this is reflected in fuel consumption, as the percentage of expatriates with driving licences accounts for about 55% of the total number of granted licences, amounting to about 1.5 million licences.

 By analogy, roughly half of the value of the government's financial subsidy for fuel goes to support expatriate consumption of gasoline and diesel, in addition to the global price difference that Kuwait loses due to the failure to lift or restrict the subsidy to citizens only.

Related News

Kuwait Tops Global Hunger Index 2024 as Least Hungry Country
  • 04/02/2025
MoI: Implementation of new traffic fines on April 22
  • 04/02/2025
Kuwait Council of Ministers Holds Weekly Meeting at Bayan Pa ...
  • 04/02/2025
Kuwait population increases every 5 minutes
  • 03/02/2025
Kuwait Stabilizes Market Ahead of Ramadan
  • 29/01/2025
Kuwait Arrests Egyptian Expat for Forging Medical Documents
  • 29/01/2025
Kuwait Ministry of Education Cuts School Bag Weight by 50%
  • 27/01/2025
Security campaigns in Jleeb and Ahmadi
  • 27/01/2025
Kuwait introduces new housing standards for workers
  • 26/01/2025
2 Young Men Killed in Saad Al-Abdullah Car Crash
  • 26/01/2025
Women’s Health Index: Kuwait ranks 1st in Middle East, 2nd ...
  • 26/01/2025
Kuwait Announces 3-Day Holiday for Isra Wal Miraj
  • 25/01/2025