The National Oil and Gas Authority (NOGA) of Bahrain plans to review fuel prices in the country and to make them fluctuate.
In January 2016, the government approved a significant increase in domestic gasoline prices as of 12 January 2016 to cut its widening budget deficit in a context of falling global oil price, making oil subsidies increasingly harder to afford. Consequently, the price for regular gasoline (Mumtaz fuel) increased by 56%, from DB 0.08/l (US$24c/l) to DB 0.125/l (US$33c/l), while that of super (Jayyid fuel) increased by 60% from DB 0.1/l to DB 0.16/l (from US$26.5c/l to US$42c/l). Diesel and kerosene prices also increased to DB 120/l in January 2016 and will continue to increase by DB 0.02/l every year, until reaching DB 0.16/l for kerosene in 2018 and DB 0.18/l for diesel in 2019.
The government now considers revising market prices to limit the impact of low oil prices. The NOGA will study the system in the neighbouring United Arab Emirates (monthly price update based on market prices).
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