Gas prices could still go up despite a decision by the National Oil and Gas Authority (Noga) last week to maintain current rates, it has emerged.

Nader Gas, Bahrain Gas and Awali Gas all want to hike their prices by as much as 40 per cent, Nader Gas assistant director Waleed Mohammed said yesterday.

Representatives from the three companies have met Noga officials to discuss the increase, which is now on hold while authorities study the proposal.

'We had earlier taken a decision to increase the prices due to our rapidly increasing costs and other overheads,' said Mohammed.

'However, this decision has now been put on hold till we hear from Noga.'

He said that according to the proposal, a gas cylinder that now costs BD1.125 ($2.98) would be increased to BD2, the BD2.050 one would be priced at BD3 and the BD4.770 one would cost BD7.

'We are convinced the hike is needed since there has been no increase in the last 30 years,' said Mr Mohammed.

'The prices of everything have increased during that time. We are paying more salaries, more benefits and more housing allowances.'

'Cost of transportation has gone up considerably and overheads, including vehicle costs and maintenance, have also risen.'

He said with all the increases, it was necessary to increase the price of gas.

Mohammed said gas companies' representatives were called to Noga after they announced their decision.

'We have decided to let them (Noga) take their time to decide. It may take a few months for that to happen, and there will be no increase till then,' he said.

Mohammed said companies appreciates the role of Noga and Bapco for their efforts.

'Senior officials have taken it upon themselves to ensure that our demands are carefully considered. We appreciate that,' he said.

Nader Gas Company chairman Saleh Ali Ibrahim Abdul A'Al had said last Friday that prices would go up from June 1. He said though Bapco had not increased the prices, the increase was inevitable, keeping in mind the steep increase in cost of delivery. Noga officials could not be reached for comment yesterday.-TradeArabia News Service