Bahrain raises gasoline prices to reduce state spending

Bahrain has lifted some subsidies on gasoline, raising prices a week after introducing a tax on cigarettes and soft drinks as state revenues continue to face pressure from lower oil prices.

Bahrain's state-run news agency on Monday said gasoline prices would increase between 12 and 25 percent, depending on the grade of gasoline. The government has reduced its expenditures by lifting some subsidies in recent years following a collapse in oil prices in mid-2014.

To boost revenue, the tiny-island nation imposed an excise tax on tobacco products, energy drinks and soft drinks this year.

Bahrain's reforms follow both Saudi Arabia and the United Arab Emirates, which have reduced gasoline subsidies, introduced similar excise taxes and added a 5 percent tax on most goods and services.