Bahrain’s cabinet has approved a new pricing system for diesel and kerosene introducing a gradual rise of prices for domestic customers, set to take effect in January, reported the Kuwait Times. Bahrain is taking the move to reflect on expected rises in other Gulf Cooperation Council (GCC) states.

The country’s Energy Minister, Abdul Hussein bin Ali Mirza also revealed that redirecting the gasoline subsidy was still under study, according to Bahrain News Agency, adding that kerosene and diesel subsidies will be maintained for bakeries and fishermen.

The Bahraini Information and Parliament Affairs Minister, Isa Abdulrahman Al-Hammadi added that a study conducted by the University of Bahrain (UoB) had found that raising the price of diesel by 20% will have minimal effects on the economy and living standards as the inflation rate was likely to go up by only 0.04%.