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PETROL prices in Bahrain are to remain capped for now, to ease the burden on consumers, Oil and Gas Affairs Minister Dr Abdulhussain Mirza reiterated yesterday.But a review committee may study a potential increase in the future, he told the GDN.

The last time petrol prices were increased in the local market was in 1983, said Dr Mirza.

He said the cost of subsidising domestic fuel was expected to exceed BD100 million this year, given rising world oil prices.

'However, we have no immediate plans to increase fuel prices in Bahrain,' said Dr Mirza, dismissing a newspaper report that the subsidy was to be scrapped.

'The government does not want to burden people with such an increase now, because of people's concern about the one per cent tax towards unemployment benefits, as well as fears of an increase in labour permit fees in future.

'Also, there have been complaints that the cost of living is going up.

'The government, therefore, thinks this is not the appropriate time to make any adjustment in prices.'

Dr Mirza said a review committee may study a price adjustment in the future.

It consists of representatives from the National Oil and Gas Authority, the Finance Ministry and Bapco.

'Like what is happening in other Gulf states, the committee regulary reviews the prices in the local market ,' said Dr Mirza.

'However, any decision to increase fuel prices will be taken only after studying its impact and taking into account all factors involved.

'The committee will carry out more studies before any crucial decision is taken.'

Dr Mirza said the cost of refining crude oil increased 20 per cent last year, due to a rise in the price of Saudi crude oil and other expenses.

'However, this will not influence the status of fuel prices in Bahrain,' he added.

'Bapco is in the process of commissioning its low sulphur diesel plant, which is expected to start generating revenue from next year.'