Bahrain Mirror: Bahrain's Minister of Energy Abdulhussain Mirza implied that there is a possibility of raising gasoline prices again, explaining that Bahrain's Ministry of Energy was assigned to study a suitable mechanism, and recommended it to the Cabinet in order to set gasoline prices in the future.

He stated this during a press conference following the weekly Cabinet meeting at Al-Qudaibiya Palace on Monday (January 11, 2016), during which it announced raising gasoline prices from 100 to 160 Fils per liter of super gasoline and from 80 to 125 fils per liter of regular gasoline, a decision that was put into effect on Tuesday (January 12, 2016).

During the press conference, Mirza insisted that the prices of oil derivatives, in particular gasoline, did not change since 33 years ago, i.e. since 1983. These price modifications will make the prices closer to what is prevalent in several GCC countries.

Mirza pointed out that the decision of raising gasoline prices will lead to the reduction of expenses by about 40 million Bahraini dinars from super gasoline prices and 16 million dinars from regular gasoline prices, i.e. a total of 56 million dinars annually. He further noted that gasoline subsidies reached 166 million dinars in 2014.

The Minister of Energy explained that the price changes will directly contribute to rationalizing this energy source and improving the efficiency of the use of energy sources, resulting in positive effects economically and environmentally.

Responding to a question about the reasons that led to raising gasoline prices after one week of Mirza's statement emphasizing that raising gasoline prices is still being studied, he said: "More than 2 weeks ago, the government said that raising the prices of all oil derivatives is still under study, not only in Bahrain but also in all other Gulf countries which have modified fuel prices; Bahrain is not the first country taking such an action."

"Recently, crude oil prices significantly declined, as Brent oil price reached USD 33 per barrel, despite being USD 115, i.e it declined by 70%, what requires taking procedures to reduce the deficit which will increase due to the falling oil prices.

Commenting on the decision of raising gasoline prices, despite the officials stating that Bahraini citizens will not be affected by the decisions of lifting subsidies, the Minister of Information Affairs and Shura Council and House of Representatives Affairs Issa Al-Hammadi said: "We mentioned the governmental justifications of this decision earlier, we are not isolated from what the other countries of the region are going through, all the countries depending on oil revenues were affected. It was necessary to take such decisions to face this issue aiming to keep the sustainability of Bahrain's economic situation. In the long term, the importance of such a decision and its impact on the sustainability of the citizens' financial situation will be revealed."

"Nobody can predict what the oil prices will be in the future, all the indications say that oil prices are leaning towards falling more. There are plans and initiatives to diversify and develop the economy, according to which the dependence on oil will be reduced. A series of decisions, however, should be taken, most of which did not affect the citizens directly", he added.

Minister Al-Hammadi further state: "When the living situation is compared to other Gulf states, it should be done fairly; salaries and the cost of living should also be compared, and not comparing one element and overlooking the other. We are facing a decision issued by an executive authority, and it will be put into effect."

Regarding the reasons behind taking the decision to raise gasoline prices without consulting a legislative authority, Al-Hammadi only said: "Consultation was made with legislative authority in principle, but to be fair, the decision to raise gasoline prices is the government's decision not the legislative authority's."

Arabic Issue