Moody’s: Kuwait’s Fuel Subsidy Reform Is Credit Positive
On 1 August, Kuwait’s (Aa2 negative) cabinet approved a series of fuel-related subsidy reforms, including an 83% increase in higher-quality ultra-premium petrol prices and a 42% increase in
lower-quality octane-91 petrol prices, which will go into effect on 1 September.
Moody’s says that these fuel price reforms are credit positive for the sovereign because they will lower current expenditures and bolster government finances dented by the downturn in global oil prices, while reducing wasteful overconsumption.
