Subsidized LPG safeguarding measures initiated by MCI and KOTC to combat misuse
In an effort to ensure compliance with regulations and promote safety, the Ministry of Commerce and Industry, in collaboration with the Kuwait Oil Tanker Company (KOTC), has initiated a campaign to tighten control over the domestic gas and fuel market.
The objective of this campaign is to combat the misuse of state-subsidized goods, specifically the reselling of household-subsidized gas cylinders to the commercial sector at inflated prices. Some private companies licensed to distribute gas have been accused of exploiting subsidies by buying cylinders at reduced prices and reselling them to commercial customers, in violation of Decree-Law No. 10 of 1979.
To address this issue, the regulatory effort includes discussions about separating cylinders intended for commercial use from those reserved for households. Stricter inspections, penalties, and the allocation of 25 kg cylinders specifically for commercial establishments are being proposed. Additionally, proposals include banning the import, distribution, and circulation of liquefied petroleum gas (LPG) cylinders and accessories unless imported directly by KOTC.
The campaign will ensure that petroleum products are used in line with regulations and in a safe manner. Ministry of Commerce inspectors will broaden their monitoring to include cooperative societies and central markets to ensure compliance with regulations and safety.
In a positive development, LPG consumption in the same period rose to 204,010 metric tons. In fiscal year 2024-2025, Kuwait Petroleum Corporation's two LPG filling plants in Shuaiba and Umm Al-Aish produced 17.9 million gas cylinders, a 3.15% increase from the previous year. Of these, 16.65 million were 12 kg cylinders for home use.
However, despite the suspension of monthly quotas for offending companies, violations continue through purchases from cooperative branches. Officials have emphasized the need to withdraw unapproved gas cylinder accessories from the local market, as they pose safety hazards.
The regulatory steps are being taken to protect lives and property, raise safety standards, and safeguard public funds from exploitation. The efforts are essential, as they aim to curb practices that drain public funds and pose safety risks.
It's important to note that no advertisements were found in the current paragraph, and the search results do not provide the names of the private companies suspected by the Ministry of Commerce and Industry in coordination with KOTC of misusing subsidies for household gas cylinders and reselling them to the commercial sector.
In conclusion, the campaign is a significant step towards maintaining the integrity of the domestic gas and fuel market, ensuring safety, and safeguarding public funds in Kuwait.
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