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FINANCIAL NEWS
Bahrain to raise prices of NG for industries
14 Jan 2015
(MENAFN) Bahrain’s cabinet announced that it has made the decision to raise prices of natural gas sold to companies, as the government begins seeking ways to save money as the plunge of global oil prices begin to pressure the country’ finances, The Peninsula Qatar reported.
According to the new decision, the price of natural gas sold to industrial users will be unified and raised gradually from April 1, though it did not specify the size of the increase in the prices
The cabinet also stressed that the readjusted natural gas prices for power generation will not affect citizens nor will it have an impact on Bahrain’s competitiveness or its ability to lure investors in the industrial sector.
The state subsidies that were keeping gas prices down create a major drain for the government’s budget, as 35 companies including Aluminum Bahrain benefit from natural gas subsidies worth USD1.62 billion annually in the country, but as the country is facing the danger of registering a deficit this year, the government is beginning to review these subsidies, which resulted in this decision.
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