Kuwait – Mubasher: The Kuwaiti government’s approval for increasing fuel prices is considered positive and will have a good reflect on the country’s sovereign and credit ratings, Moody’s said according to Kuwait News Agency (KUNA).
Moody’s said that this step “will be helpful for implementing the State tight-belt policy and lowering spending”, KUNA added.
The Kuwaiti cabinet has approved a series of fuel-related subsidy reforms, including an 83% growth in higher-quality ultra-premium petrol prices, and a 42% increase in lower-quality octane-91 petrol prices, which will be effective on 1 September.
“Kuwait, also according to Moody’s report, has been slower than regional peers in developing its non-oil and private sectors and is particularly vulnerable to oil price declines because oil-and gas-related revenues have historically accounted for around 80% of government revenues, although this decreased to 70% in 2015 because of the sharp drop in oil prices,” KUNA noted.
