Kuwait intent on countering price imbalances

The government is determined to avert any imbalances of commodities and consumer goods prices, Deputy Prime Minister and Minister of Commerce and Industry Abdulmohsen Al-Madaj.
This will be done through monitoring by the Ministry or positive interference, providing products of government companies in case a shortage of certain items occurs, Al-Madaj told reporters on the sidelines of signing an MoU and an agreement with Kuwait Flour Mills and Bakeries Company.
He stressed that the ministry is keen on a "just application" of the cabinet decision cutting subsidy on diesel, kerosene and aircraft fuel.
Part of this, the concerned companies will be exempted from the cuts, Al-Madaj said. They have to submit the relevant official documents so that they can continue receiving subsidy.
However, he warned against unjustified rise in prices, noting that violating companies will be prosecuted. Violators have so far hit 100 companies.
The minister noted that a ministry violation committee receives consumers' complaints on unjustified rise in prices.
Asked about further subsidy cuts, Al-Madaj said that a committee tasked with the issue has a long program and detailed studies, pointing out that the aim is "rationalization" and not "curtailing" subsidy so as not to impact citizens with limited income.
On today's agreement, the minister said that it is part of the ministry's duty to secure basic goods at reasonable prices, and fulfill the country's needs of commodities and strategic goods.
The MoU, meanwhile, is a comprehensive framework for a rapid mechanism to meet citizens' needs of subsidized goods through the Flour Mills and Bakeries Company, according to detailed and model contracts.
The supply agreement to provide flour and bread is an initial step to activate the MoU, with annual subsidy of KD 26 million.
The Company's CEO Youssef Al-Zeid who signed the agreement stressed that the official institutions have the potential and production capacity to secure citizens' needs.
Source: KUNA