Fuelling growth

Starting January 1, kerosene, diesel and jet fuel prices in Bahrain will increase and would continue to do so for the next four years. Speaking in a press conference following the Cabinet weekly meeting at Gudaibiya Palace yesterday, Energy Minister Abdulhussain Mirza announced that the increase would be gradually implemented, saving the country BD91 million in the next four years.

Dr. Mirza confirmed that the price hike would not include local bakeries and fishermen.

“Implementing the decision would have a positive impact on strengthening the national economy, rationalising the consumption of these fuels, curbing the smuggling of subsidised diesel and the drainage of national resources and decreasing the public debt by saving funds,” the Minister said, confirming that the increased prices would not affect the livelihoods of citizens. He explained: “The main beneficiaries of kerosene, diesel and jet fuel are not the citizens, as majority of these fuels are consumed by the establishments in the industrial field.”

Dr. Mirza also revealed that “a study has been conducted in cooperation with the University of Bahrain and the National Oil and Gas Authority to observe the effects of the price increase on citizens’
livelihoods.”

According to him, the results of the study showed that implementing the decision would have a very limited impact on citizens’ livelihoods (less than 0.05 per cent).

The Minister also pointed out that diesel and kerosene prices in Bahrain were considered the lowest in GCC countries. “Even after increasing the prices, Bahrain would remain a main competitor in regards to these oil products prices in the region.”

During the conference, Parliament and Information Affairs Minister Isa bin Abdulrahman Al Hammadi explained that the implementation of the decision comes within the government’s plans to redirect subsidies to benefit only citizens, clarifying that the decision was taken after intense discussions and consensus with Parliament and Shura Council.

Al Hammadi added that the redirection of subsidies decision was included in the Government Action Plan for the years 2015 – 2018 and would positively impact citizens’ livelihoods.