Petrol price in Bahrain set to be adjusted based on global market rates

TDT | Manama

Email: mail@newsofbahrain.com

Petrol price in the Kingdom will be adjusted in line with global market rates, with financial support extended to eligible citizens.

This proposed framework was discussed during talks this week between government and legislative authorities regarding the 2025–2026 state budget, focusing on adjustments to state support and new revenue measures.

Talks covered plans to transition subsidies into direct financial assistance while maintaining stability in essential goods and services. Subsidies for liquefied petroleum gas (LPG), kerosene for traditional bakeries, and diesel for fishermen would remain unchanged.

The discussions also outlined an investment of BD400 million in power and water infrastructure over the next two years.

‘Citizen Account’

A programme will be introduced to assist with electricity and water bills at first homes through a ‘Citizen Account’, which will be structured in coordination with legislators to define eligibility and payment mechanisms.

A corporate tax framework, based on revenue and profit, is being examined, with specific sectors expected to be exempt to protect employment opportunities for Bahrainis.

Additionally, a pricing mechanism for businesses exceeding carbon emission limits is being considered as part of a strategy to diversify state income while ensuring Bahrain remains an attractive environment for investment.

Cooperation

Finance and National Economy Minister, His Excellency Shaikh Salman bin Khalifa Al Khalifa, underlined the importance of cooperation between the government and the legislative authorities to manage public spending responsibly while advancing economic plans.

He noted that Bahrain had achieved a primary budget surplus following the completion of the Fiscal Balance Programme through a combination of cost reductions and increased nonoil revenue.

Council of Representatives Speaker Ahmed Al Musallam stressed that budget discussions should prioritise enhancing living standards, increasing employment opportunities, and ensuring steady economic growth.

Fiscal adjustments

Meanwhile, Shura Council Chairman Ali bin Saleh Al Saleh affirmed that fiscal adjustments should be carefully managed to protect key services and maintain financial sustainability.

Discussions also reviewed value-added tax (VAT) revenue, with figures showing that in 2024, businesses, residents, and visitors contributed 92 per cent of collections, while Bahraini citizens on low and middle incomes accounted for just 2 per cent, owing to VAT exemptions on 94 essential goods and 1,300 government services.