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When Kuwait's government said last month that it planned to raise domestic prices of diesel fuel and kerosene, some angry Kuwaitis took to Twitter to denounce the move as unfair.Last month, Oman's Financial Affairs Minister Darwish al-Balushi told Reuters his government would likely start cutting some state subsidies next year, and that the oil price slide had made public opinion more supportive of this.The oil price slide has not left Kuwait close to running out of money; the IMF has estimated it needs an oil price of only $54 to balance the state budget, far below Brent crude oil's current price of around $85 .The Cabinet has not yet announced any date for a hike in diesel and kerosene prices, but in a report earlier this year, state news agency KUNA estimated diesel price reform would save the government around $1 billion a year.Oman's oil reserves are small compared to those of its neighbors and if the price of oil stays around $85 a barrel, the government looks likely to run a budget deficit next year.The oil price slide may now pressure the government into reviving the plan.Its neighbor the United Arab Emirates increased fuel prices by 26 percent in 2010, but prices are still very low by international standards and no fresh plans have been announced.
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