Today marks the first day of unsubsidised fuel prices in Kuwait after the government announced in August that prices would increase by more than 80%.
The decision was made in response to low crude oil prices and towering budget deficit threatening the country's economy.
The price of ultra grade gasoline will be raised to 165 fils per litre from 95 fils currently, while super grade will retail at 105 fils from 65 and the premium grade at 85 from 60, according to state news agency KUNA.
The price increase is expected to create a change in consumption, as motorists are now more likely to start using lower grade gasoline, Chief Executive Officer of Kuwait National Petroleum Company (KNPC) Mohammad Al-Mutairi told KUNA on Wednesday.
According to al-Mutairi, daily consumption of gasoline in the country is as follows: 1,833mn litres for Octane-91, about 9,135 litres for Octane- 95 and 267,000 litres for Ultra 98.
Gasoline consumption has grown by about 4% in the past five years. Currently, Kuwait needs a total of 11.235mn litres of gasoline to meet daily domestic demand, al-Mutairi said.
The country's two main refineries Mina Al-Ahmadi and Shuaiba refinery have a combined gasoline production of 11.5mn litres, allowing KNPC to meet current domestic demand.