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‘Subsidy cuts to save nation 20%’
June 9, 2014, 9:54 am

The Finance Ministry has presented the first batch of recommendations on government subsidy for electricity, water and diesel, reports Al- Qabas daily quoting sources. Sources disclosed the ministry laid down the following suggestions after conducting a study on the subsidies:

1- Dividing electricity consumers into groups - from zero to 12,000 kilowatts monthly with fees starting from two fils to 12 fils for maximum consumption.

2- Water consumers in private accommodations should be divided into groups - from zero to 30,000 imperial gallons. Fees will be 800 fils per 1,000 gallons for those who consume 10,000 gallons and below; whereas fees may reach KD2.5 per 1,000 gallons for those with maximum consumption - more than 30,000 gallons. For the commercial and residential sectors, fees will be increased from 800 fils to KD2.5 per 1,000 gallons.

3- Diesel subsidy will be lifted from distribution stations. In addition, distribution will be only through the main pumping stations to foil attempts to smuggle diesel. Sources added the abovementioned pricing scheme for water, electricity and diesel will result in 20% savings for the country’s treasury in terms of the cost of these services.

Meanwhile, the Ministry of Electricity and Water is currently conducting a study on the possibility of using slightly saline water from Umm Qadeer for a number of operations at the water distillation station in North Al-Zour, instead of using water from Wafra, reports Al-Seyassah daily quoting a reliable source.

The source explained this step signals the beginning of development works in Al-Wafra oilfield to produce slightly saline water, adding the ministry has allotted a budget of KD16 million for this project. He said this will balance the distribution of fresh water to the existing areas, as well as the new residential cities like Sabah Al-Ahmad and Al-Khairan and others which will be established in the future.

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