Bloomberg News

Bahrain Energy Subsidies Total $1.7 Billion a Year, Alayam Says

June 26, 2012

Bahrain spends 650 million Bahraini dinars ($1.7 billion) a year on energy subsidies, Alayam reported, citing Oil Minister Abdul Hussain Ali Mirza.

Electricity subsidies cost the kingdom 250 million dinars and the remaining 400 million subsidize fuel and other refined products, Mirza told the newspaper. The government may focus subsidies on low-income citizens, as many people on high incomes, and expatriates, benefit from them at present, he said.

Bahrain, the smallest Persian Gulf oil producer, consumes 38 percent of its natural gas output to generate electricity, Alayam quoted Mirza as saying. The kingdom’s electricity peak- load this summer will rise by 12 percent from a year ago, to 3,150 megawatts a day; maximum capacity is 4,000, Mirza told the newspaper.

To contact the reporter on this story: Wael Mahdi in Manama, Bahrain at wmahdi@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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