Why import fuel to an oil-rich country? :: Gulf Daily News

Answer, price controls:

An illegal diesel smuggling operation has been by thwarted by the Bahraini Coastguard.

Officials swooped on Muharraq Port and seized 12,000 litres of diesel as it was being loaded onto a Bahrain-registered dhow on Sunday evening, authorities announced yesterday.

A senior National Gas and Oil Authority official said the Coastguard was acting on a tip from its inspectors, who reported that the dhow was overloaded.

"The reason behind diesel smuggling is its price, which is subsidised by the government (in Bahrain)," said the official.

"It is being sold in Bahrain for 70 fils per litre, while it is sold in other neighbouring GCC countries for 160 fils per litre.
. . .
Bahrain Fishermen's Society spokesman Waheed Al Balooshi told the GDN yesterday that the dhow was owned by a Bahrain shipping tycoon.

"His Indian captain was caught overloading and was carrying 12,000 litres of diesel, while the most allowed is 4,000," he said.

"He was heading to the UAE, but was caught while loading the diesel."