Kuwait is to increase the prices of gasoline by as much as 73 per cent from September, showing how the oil price slump is affecting the energy-rich Gulf state's finances.

Oil-exporting states around the Gulf are reducing subsidies for fuel, public utilities and food, and freezing or slowing the growth of public sector wages as they try to curb big budget deficits caused by low oil prices.

Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain have all taken such steps in recent months but Kuwait has been slower to act.

With the move, now joins the other Gulf Arab countries in making major reforms to its energy subsidies.

Kuwait's cabinet said on Monday that the price for the ultra gasoline grade would rise to 165 fils ($0.54) a litre, from 95 currently, the super grade to 105 from 65 and premium grade to 85 from 60, state news agency KUNA reported.

Kuwaiti Finance ministry undersecretary Khalifa Hamada told the al-Qabas newspaper at the end of 2015 that "rationalising" subsidies would save the government KD2.6 billion ($8.7 billion) over three years.

Anas al-Saleh, the Finance Minister and acting oil minister, in July predicted a KD9.5 billion budget deficit for the current fiscal year, which began on April 1.

Last year, the United Arab Emirates raised octane 95 gasoline by almost a quarter. Qatar raised domestic prices of gasoline by 30 per cent in January. Top oil exporter Saudi Arabia also aims to cut water, electricity and fuel prices according to a National Transformation Plan rolled out in June. – Reuters