New gas rates could be introduced for government and private companies as well as industries if MPs have their way.

Parliament yesterday voted in favour of a proposal by chairman Khalifa Al Dhahrani that aims to ensure that subsidised gas rates are not offered to companies and industries anymore.

He told MPs that the government's revenue from gas sales in the local market were BD602 million ($1,601 million) last year, while it could have been more if it was sold according to international rates.

"The government is giving subsidised gas to 33 companies and industries in Bahrain - 27 private and six government - while they can easily cope with international rates that wouldn't have any harm on their profitability," said Al Dhahrani.

"A reassessment of the rates has to be done immediately and new rates have to be introduced because the government is losing millions that it could benefit from. Public money is being squandered and if utilised properly could have solved many ongoing budgeting problems," he concluded. – TradeArabia News Service