MANAMA/DUBAI: The Bahraini government will reassess plans to raise domestic diesel prices from mid-January, its prime minister told lawmakers yesterday after some boycotted parliament in protest, state news agency BNA reported.

Bahrain’s National Oil and Gas Authority (NOGA) announced plans on December 23 to raise the price of diesel from January 15 to reduce the heavy subsidy burden on state finances.

Several members of parliament boycotted their weekly meeting yesterday in protest over a series of planned annual increases that would have seen diesel prices nearly double over the next four years.

In response, Prime Minister Khalifa bin Salman Al Khalifa visited parliament to tell lawmakers the price hike plan should be reviewed so parliament could make a final decision on raising diesel prices as soon as possible, according to BNA.

The International Monetary Fund warned earlier this year that Bahrain urgently needed to reform its economy to stop its debt burden becoming unsustainable.

Like other countries in the Gulf, Bahrain heavily subsidises fuel prices for consumers, despite the pressure on public finances that this creates.

The current fuel price proposal — which would see diesel rise by 20 fils to 120 fils ($0.32) per litre on January 15 and hit 180 fils in January 2017 – is intended to reduce government spending on cheap diesel for all so more scarce government funds can be better targeted at Bahrainis.

Reuters