In line with the Royal Law No. 36 of 2014, issued by His Majesty King Hamad bin Isa Al Khalifa, with regard to criminalizing and combating the smuggling of the subsidized oil products, National Oil and Gas Authority (NOGA) announced its full support to follow procedures in preparing drafts of necessary resolutions and regulations, and submitting them to competent authorities for approval.
The law includes several articles. The first article defines the crime of smuggling oil products of all kinds, mixed or unmixed, new or recycled, stating the penalty for each offence. The second article states that the presence of tankers loaded with oil products both within the customs office or any place dedicated to oil tankers without a NOGA permit is an attempt to smuggle those products and is punishable with the same penalty. The third article gives the competent Minister the authority to determining oil products backed by a decision based on the approval of the Council of Ministers.
The perpetrators of oil smuggling face imprisonment of six months up to three years, and a fine equivalent to the cost of the unsubsidized product and not more than threefold its value, or one of the two punishments, and the confiscation of such unlicensed, smuggled and exported oil products of all kinds, including adulterated and recycled by-products.
The government subsidies for petroleum products in the Kingdom of Bahrain range between 200 million dinars to 240 million dinars annually, while the quality of diesel produced locally meet international standards are much sought after in global markets because of the high quality and low percentage of sulphur, resulting in great demand.