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FINANCIAL NEWS
Bahrain includes USD2.64b fuel subsidy in draft budget
23 Dec 2012
(MENAFN) The Bahraini government has submitted a draft national budget to the parliament, with about USD2.64 billion a year in oil and gas subsidies included, Gulf Daily News reported.
MP Latifa Al Gaoud said the draft budget puts the cost of subsidising fuel at USD2.32 billion in 2013, while the figure jumps to USD2.5 billion in 2014.
However, MPs are now due to review government subsidies in the coming meeting, including whether the current system should be changed to favour those most in need of support.
They are also looking at whether the proposed subsidies should be slashed, potentially leading to an increase in prices.
Al Gaoud’s committee will study the subsidy system of other countries in the region, where petrol is actually more expensive, before making a decision.
MPs will also look into the environmental impact of subsidizing fuel, assuming that cheaper oil and gas encourages faster consumption.
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