Bahrain raises gasoline prices to improve finances

(MENAFN- Arab Times) KHOBAR, Saudi Arabia, Jan 8, (RTRS): Bahrain raised gasoline prices on Monday to bring them closer to international levels, state news agency BNA reported, quoting the National Oil and Gas Authority. Octane 91 sold for 140 fils (37 US cents) a litre, up from 125 fils, while Octane 95 sold for 200 fils, up from 160 fils. Prices will remain among the lowest in the world.

Bahrain, whose debt is rated junk by all three major credit rating agencies, has seen its state budget severely strained by the cost of subsidies that keep fuel prices down.

BNA did not say how much money the price hike would save the government. Neighbouring Saudi Arabia raised domestic fuel prices last week as part of economic reforms, responding to public discontent by compensating citizens with cash handouts. Bahrain, with weaker state finances, has less room to mitigate the impact of higher fuel prices.

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