Kuwait to convert to unleaded gasoline

Kuwait will convert almost completely to unleaded gasoline overnight in October, a first in the Middle East, a Kuwait National Petroleum Co. (KNPC) spokesman said.

The fuel will available in all 90 KNPC-operated petrol stations starting in October in a bid to "protect the environment and public health," Al-Yazout said. Only 12 stations will continue to sell leaded petrol.

The government will double the price of leaded fuel, despite the higher production costs of unleaded gasoline, to encourage people, to convert to unleaded.

But prices will still remain among the lowest in the world, with unleaded selling for between 30 and 50 fils (10-16 cents) a liter depending on the grade, while leaded will sell for 60 fils (20 cents) a liter.

Kuwait's major government oil body, the Supreme Petroleum Council (SPC), last month approved a merger between state-owned Kuwait Oil Company (KOC) and KNPC, although no details of the proposed merger have been released.

KNPC runs Kuwait's oil refining and gas liquefaction and handles the local marketing of petroleum products.

Its merger with KOC, which controls oil exploration production, will give the two companies a virtual monopoly on Kuwait's oil operations.

The SPC also approved the privatization of the Petrochemicals Industries Company and Kuwait Oil Tankers Company, two subsidiaries of the conglomerate.