Bahrain, Oman Cut Gas Subsidies as Oil Hits 12-Year Low
TEHRAN (Tasnim) – Bahrain and Oman reduced state subsidies as the global oil price dipped to its lowest since 2003 on Tuesday.
On Tuesday, gas prices at the pump rose by up to 60 percent in Bahrain, to $1.25 per gallon for regular gasoline and $1.60 per gallon for premium fuel.
Oman said it would reduce subsidies starting Friday and increase gasoline prices by 33 percent for premium fuel and 23 percent for regular fuel.
Crude prices closed Monday at $31.41 a barrel on the New York Mercantile Exchange, according to AP.
The dip in prices has cut into the revenues of oil-exporting countries, including many Persian Gulf states. To save on expenditures, the United Arab Emirates and Saudi Arabia reduced fuel subsidies last year.
Saudi Arabia has been widely blamed for the plummeting oil prices as Riyadh has adamantly refused to cut its crude output in a bid to drive other oil market players, including US shale producers, out of the market.
