Bahrain government insists fuel price hike not "illegal"

11 January 2018
Bahrain’s National Oil and Gas Authority (Noga) has raised fuel prices between 12 and 25 per cent

Manama has defended its decision to reduce fuel subsidies in the kingdom, which led to a rise in fuel prices, insisting the hike was neither “illegal” nor “unconstitutional”.

Speaking at a session of Bahrain’s Representatives Council, the Minister of Shura and Representatives Councils Affairs Ghanim al-Buainain said the fuel price hike was ratified by the council when the government presented its plan to the body back in 2015, a local media outlet has reported.

Al-Buainain was apparently responding to a move by certain Council members earlier this week urging the government to rethink and potentially reverse the decision to increase consumer fuel prices, saying it is going to hurt ordinary citizens.

“A letter has already been forwarded to the government seeking suspension of the fuel price hike. We are trying to find alternative solutions to make things less burdensome to the ordinary citizens,” MP Mohammed al-Ammadi said, according to the local media report.

“The decision is completely illegal as the order to hike fuel prices came unannounced and without discussing the matter with the lawmakers,” said another MP Jamal Dawood.

“The government needs to realise that the earning power of Bahrain vastly varies compared to other GCC countries. The government decision will fuel prices without any increase in the real income of the people,” he said.

Bahrain’s National Oil and Gas Authority (Noga) has raised fuel prices between 12 and 25 per cent, depending on the grade of the fuel. The cost of Mumtaz (95 octane) petrol rose from 160 fils to 200 fils per litre, Jayyid (91 octane) fuel increased from 140 fils per litre from the previous 125 fils.

The decision is aligned to a larger effort by the Bahraini government to reduce government expenditures on subsidies in the wake of below par oil prices.

This year, the government has also sought to increase state revenue by introducing an excise tax on tobacco products, energy drinks and soft drinks, following similar moves by the UAE and Saudi Arabia.

Prime Minister Prince Khalifa bin Salman al-Khalifa has also ordered that a study be conducted on government subsidies to low and medium income citizens to ensure that they continue to receive the state’s assistance, according to local media reports.

In April, Bahrain’s energy minister said he expects the kingdom to save $1.6bn by 2019 by implementing a cost restructuring strategy to boost state revenues, and ensuring government subsidies for only the needy.

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