Is the government supported the 26-year gasoline prices?

Is the government supported the 26-year gasoline prices?
Is the government supported the prices of petrol (motor fuel) 26 years?

It is the beneficiary of support?

Class, poor or rich?

What is the effect of the abolition of fuel subsidies?

Out official statements concerning the support and motor fuels, most notably the government's response to the House of Representatives, saying: «The subsidized prices for gasoline have not changed since 1983, no 26 years ago». Which suggests to the reader that the support has continued since 26 years.

But this information did not reflect the whole truth, as the citizens are the ones who were supporting the Government during that period with the exception of the height of crisis, and the period of the United States invaded Iraq in 2003 until today.

The government is selling Citizen liter of gasoline in the domestic market at a price higher than world prices. The crude oil prices were low in those years, as the price of a barrel of oil up to $ 8 (about 3 BD) in December 1998.

A barrel of crude oil to the refinery Bapco current up to 10 dollars (3 dinars and 700 fils) in the year 2010. When the barrel results in many refining of petroleum products including gasoline. If you sold all these products that earn the company reiterates oil up to $ 3 (about JD and 130 fils) per barrel global average.

This means that each barrel of oil refining of the final price of $ 13 (about 5 dinars) in 2000.

While the citizen was buying a barrel of fuel stations at $ 33 (about 12 dinars and 700 fils), any citizen that he supports the government about $ 20 (7.5 dinars) per barrel.

Barrel equals 159 liters, and sold a liter of gas well at 80 fils, and thus the price of a barrel of good about 12 dinars and 700 fils or $ 33, while the excellent price of 100 fils per liter, so a barrel, excellent price of 15 dinars and 900 fils or $ 42.

And crude oil prices from 1983 until 2000 was low trading at less than $ 20, with the exception of the crises in the year 1983 at $ 30, and in the years 1984 and 1985 for between $ 20 and $ 28, and in 1990, when Iraq's invasion of Kuwait at a price ranging between 17 and 32 dollars per barrel.

And from 2001 to 2003, the price of a barrel of between 20 and $ 30, after the U.S. invasion of Iraq, prices started to rise gradually until it reached the highest historical price, about $ 147 a barrel on July 11 2008.

Thus, the government supported the gasoline from 2003 to today, while in those years was the citizens who support the government, represented by Bcrkadtha responsible for selling a product of petrol in the local market. Except for some years, which amounted to the peak of war.

If the account inflation, the citizens were buying gasoline at high prices, value of the dinar in the year 1999 equivalent to two dinars of the year 2010, due to inflation. The citizen was buying several needs of the dinar and one in 1999, but now The same widgets have bought Bdinarin or three dinars in 2010.

The other question, who is the beneficiary of the support, the poor or rich?

The biggest beneficiary of the support of gasoline are those who belong to the wealthy class, as the family-rich one that has between 4 and 5 luxury cars of large size, which consumes fuel in a large, up to 100 dinars, and as a result of well-being, they make trips and frequent visits.

While a poor family has one car, consume little fuel, about one dinar per day, equivalent to 30 dinars per month.

For me personally, head of a family of 3 individuals, consumed about 25 dinars a month of premium petrol. If the government eliminated subsidies on gasoline and raised the price of liter of 100 fils to 158 fils, the bill will rise to 39 dinars a month, any monthly increase of (14 dinars).

I know a lot of families, do not consume up to 10 dinars of gasoline, by virtue of their work near the site of the house, and use the car for a time of need only.

In relation to the impact of raising gasoline prices, the rich families will not be affected by money and it has a capacity to pay and bear the high bills, but poor households are affected by it quickly, because they do not have what you pay. Families with middle class (which depends on the well-being of the borrowing), it is located between the two parties as possessed of income.

The impact on trade and economic sector, it will be the same labor market impact fee of 10 Dinars for each worker. But most damaging is the transport companies, which rely heavily on transportation.

There are a lot of solutions to address the effects of removal of subsidies on gasoline, such as providing compensation to those affected in accordance with the principle of proportionality, and support the economic sectors to withstand the negative effects.

The question that is supposed to give him an answer to the government, citizens, is where the money will be spent Almsahlp of raising the prices of gasoline? Why was the start raised the prices of gasoline, although there are a lot of options and tools for word on the state tens of millions of dinars?




Abbas singer
Bahraini newspaper Al Wasat - No. 3018 - Saturday, December 11, 2010, corresponding to 05 Muharram 1432 AH