Car sales hit by oil price rise

Car sales hit by oil price rise

Manama : The increase in petrol prices since the beginning of this year had its toll on the local automobile market, according to car showrooms owners and managers.

They say the prices of vehicles with bigger engines, usually consuming more petrol, have dropped by around 15- 20 per cent since the prices of gasoline were hiked.

These cars were among the top-selling categories in the Kingdom before the oil price rise. The petrol price rose following Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa’s Resolution 1 of 2018.

The resolution was announced on January 8 and ever since, the prices of Jayyid (91-octane) has been increased from 125fils/litre to 140 and Mumtaz (octane-95) from 160fils/litre to 200.

A similar decision was announced in 2016 by the former Energy Minister Dr Abdulhussain Mirza, raising the prices from 80fils/litre for the Jayyid fuel to 125 and from 100fils/litre to 160 for the Mumtaz. It was the first petrol price increase in Bahrain in three decades.

Alternative Options

Speaking more about the situation, Majestic Car Showroom Manager Najm Al Sinan told Tribune, “The sale of six and eight-cylinder cars has declined by around 10-15 per cent in the first quarter of the year, since the prices of fuel and other important commodities and services increased in Bahrain.

This type of cars has been very popular among the youth, as well as local and Arab families here. But they now look for more economic alternatives.” Al Sinan explained that their showroom and car rental agency mostly buy, sell and rent brand new and hardly used cars. He confirmed that the numbers of customers have been generally declining lately, attributing it to the increasing expenses of life, including  petrol, and the steadily weakening purchasing power.

“Customers are more concerned about the fuel consumption of vehicles than other luxury options nowadays. Economic cars sell like hot cake now. More vehicles are now entering the market and gaining good popularity among people such as electric cars and hybrid vehicles, which run on fuel and electricity at the same time. They’re mostly Japanese or German-made. Despite the current recession in the market, I expect the situations to gradually improve, especially with the emergence of such economic alternatives.”

However, when asked about the speculations indicating that diesel-running vehicles might gain popularity in Bahrain as a cheaper choice of fuel, similarly to regional, Asian and European countries, Al Sinan remarked, “I don’t expect people here would choose economic solutions against protecting the environment. Diesel is harmful and air pollution rates are high in many countries where vehicles depend on it to run. Some trucks operate on diesel here, and their numbers are declining. But to have diesel-operating vehicles is unexpected, especially among smaller cars.”




Bahrain Financing Company Donates To Relief Fund

Bahrain Financing Company Donates To Relief Fund

Bahrain Financing Company has donated Rs 3.5 Million (nearly BD 19,500) towards Kerala's Chief Minister's Relief Fund in an act to assist the people of Kerala following the disastrous floods over the past week. Delegates of the Bahrain Financing Company include General Manager Mr 

Traditional café reopens at new location

Traditional café reopens at new location

One of Bahrain’s iconic café reopened at its new location near Bab Al Bahrain.  Industry, Commerce and Tourism Minister Zayed Al Zayani inaugurated the new-look Abdul Qadir Café, after its relocation from its decades-old premises in Manama Suq. The minister congra

Embassy celebrates India Independence Day in style

Embassy celebrates India Independence Day in style

The 72nd Independence Day of India was celebrated by the Indian Embassy and many other expatriate organisations in the Kingdom with a wave of patriotic zeal and enthusiasm. The major celebration was held by the Indian Embassy at the new embassy premises in Seef. Indian Ambassador Alok K S


Bahrain Financing Company Donates To Relief Fund

Bahrain Financing Company Donates To Relief Fund

Bahrain Financing Company has donated Rs 3.5 Million (nearly BD 19,500) towards Kerala's Chief Minister's Relief Fund in an act to assist the people of Kerala following the disastrous floods over the past week. Delegates of the Bahrain Financing Company include General Manager Mr 

Kyrgios forgets shoes

Kyrgios forgets shoes

Nick Kyrgios has a knack for being the centre of attention and the Australian was at it again on Tuesday as he arrived on court for his first-round match at the Cincinnati Masters on Tuesday without his tennis shoes. The world number 18 took his courtside chair and kicked off his high-top

‘The Lord of the Rings’ cast reunites

‘The Lord of the Rings’ cast reunites

Stars of one of the popular Hollywood franchises ‘The Lord of the Rings’ reunited, and made it memorable for the fans by filling social media platforms with their reunion pictures. Actor Orlando Bloom, who played Legolas in the film, took to his Instagram and uploaded a photo

India to put a man in space by 2022: Modi

India to put a man in space by 2022: Modi

India will send a manned mission to space by 2022 and introduce health insurance for half a billion of its citizens, Prime Minister Narendra Modi pledged yesterday in a keynote speech ahead of an expected election campaign. Modi, speaking from the ramparts of the historic Red Fort in New

UK parliament attacker faces murder charges

UK parliament attacker faces murder charges

A British man accused of a terror attack after driving into a barrier protecting the Houses of Parliament faces investigation for attempted murder, police said yesterday. Three people were injured when the 29-year-old, named by media as Salih Khater, drove over a pavement and into cyclist

Traditional café reopens at new location

Traditional café reopens at new location

One of Bahrain’s iconic café reopened at its new location near Bab Al Bahrain.  Industry, Commerce and Tourism Minister Zayed Al Zayani inaugurated the new-look Abdul Qadir Café, after its relocation from its decades-old premises in Manama Suq. The minister congra