Nooooooooooooooo !!!!

GOODBYE TO CHEAP PETROL?

By MANDEEP SINGH

MANAMA

MANAMA: Bahrain could soon scrap cheap petrol for all, in favour of a system geared to help only the needy.

"Why should someone who has, say 10 cars, pay the same price for a litre of fuel as someone who can barely afford one?" Oil and Gas Affairs Minister Dr Abdul Hussain Mirza told the GDN.

He was responding to a United Nations Environment Programme (UNEP) call for a worldwide curb on fossil fuel subsidies, to help cut greenhouse gas emissions and to spur economic growth.

Bahrain is looking at ending blanket subsidies of petrol and diesel, but would continue to help the needy, said Dr Mirza, who is also National Oil and Gas Authority chairman.

Drivers in Bahrain pay 100 fils a litre for high-grade Mumtaz petrol and 80 fils for Jayed.

"The yearly $400 million which the government of Bahrain gives on such local products is being misused and leading to overuse," said Dr Mirza.

"I agree with the UNEP view and am of the opinion that because these products are cheap, they are not being used properly.

"Also, the cheap prices do not help the environmental cause, because of overuse."

He said if the subsidies were to be removed, the products would become expensive and people would be careful while using them.

"The subsidies are being used by everyone, while they should really be directed towards the poor,"

said Dr Mirza.

He said prices of these products had remained unchanged for a quarter of a century.

"A system is now being envisaged through which only those who really need the cheap prices would be able to get them. We are of the view that in the long tern, subsidies should be directed towards only the needy," said Dr Mirza.