Bahrain said to plan revamp of energy subsidies
The changes may start as early as this month
Bahrain will revamp subsidies that have led to excessive consumption of energy, Central Bank governor Rasheed al-Maraj was quoted as saying.
The changes may start as early as this month and will include 'certain mitigations' to avoid fueling inflation, he said in comments published by Bloomberg.
“We are very much aware that the level of consumption in energy... is not sustainable,” al-Maraj said, adding: “The philosophy of directing the subsidies toward the needy is now being reflected into the programmes.”
His comments follow reports last month that Kuwait's government plans to form a special committee to review subsidies on goods and services which are costing the Gulf Arab state more than KD4.5bn ($15.9 billion) a year.