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Bahrain's cabinet has approved a new pricing system for diesel and kerosene that is set to begin in January, state news agency BNA reported on Monday.
The new pricing system is expected to result in a "gradual increase" in the cost of both fuels to domestic customers in the coming years, as Bahrain adjusts its prices to reflect expected rises in other GCC states.
"Bahrain continues to preserve its competitiveness with the GCC even after the adjustment of prices in diesel and kerosene and will observe the gradual increase in diesel fuel and kerosene over the coming years," said the statement, attributed to the kingdom's energy minister, Abdul Hussein bin Ali Mirza.
The pricing system comes after a detailed study with the relevant authorities and parliamentary committees in the kingdom "tasked with looking at subsidies and growing government revenues", said the statement.
The decision will benefit Bahrain's national economy and, at the same time, preserve the interest of citizens, the statement added.
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