Proposed law eyes $5 cut per barrel from oil exports

TDT | Manama

Email: mail@newsofbahrain.com

A proposed law that could see Bahrain deduct up to five dollars per barrel from oil exports when prices exceed $120 will be debated and voted on next Sunday in the Shura Council, potentially directing millions into the Future Generations Reserve.

The draft law, backed by the Shura Council’s Financial and Economic Affairs Committee, links deductions directly to oil prices, ensuring extra revenue flows into the sovereign savings fund.

If passed before the 2025 financial year, the new system would replace a less ambitious savings schedule set to begin in January, securing more funds while oil prices remain high.

Under the proposed rules, deductions would start at one dollar per barrel for oil priced between $40 and $60, rise to two dollars when prices reach $60 to $80, and climb to three dollars if prices top $80 but stay under $100.

Prices

They would jump to four dollars when oil prices exceed $100 but remain below $120, hitting five dollars per barrel if prices pass $120.

The Ministry of Finance and National Economy has described the move as a sensible way to strengthen Bahrain’s financial reserves.

The Ministry of Oil and Environment also backed the plan, noting that Bapco Refinery’s oil exports made up 82 per cent of its total sales in 2023, with revenues used for operations and development projects.