Bahrain to hike prices of fuel by cutting government subsidy

Bahrain today announced plans to cut government subsidies for diesel and kerosene from next month, state media reported, after similar moves by its Gulf neighbours.

Bahrain today announced plans to cut government subsidies for diesel and kerosene from next month, state media reported, after similar moves by its Gulf neighbours. BNA news agency cited Energy Minister Abdulhussein Merza as saying the changes would take effect from next month, adding however that subsidies would remain in place for bakeries and fishermen.

The minister also said that the lifting of petrol subsidies was still under consideration. Saudi Arabia today said it has decided to raise petrol prices by 50 per cent from tomorrow as part of subsidy cuts for petroleum products, power and water after posting a record USD 98 billion budget deficit for 2015.[ALSO READ: Aviation Turbine Fuel price up 5.5 per cent; non-subsidised LPG cut by Rs 42]

United Arab Emirates has liberalised fuel prices while Kuwait lifted subsidies on diesel and kerosene from the start of this year. The Gulf states, which rely heavily on oil income, have been facing tough times since crude prices fell sharply.