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Manama: Bahrain's electricity and water authority has urged people not to heed allegations that fees would be increased.

"Recent statements by a Member of Parliament that water and electricity fees would be increased by 1,000% are not true and lack credibility," the authority said in a statement.

"The allegations were not based on facts or information from reliable sources, which make them pure speculations that do not serve national interests."

MP Abdullah Al A'ali, representing Al Wefaq, the largest parliamentary bloc, this week warned against the move to increase of electricity and water fees.

The MP said that there were news that the increase would be by 1,000% and asked the electricity and water authority to explain the motives for the dramatic hike.

"The government should not think about increasing fees. In fact, it should work on alleviating burdens," he said.

The water and electricity claim was made as Bahrain is wary of possible higher prices for fuel and commodities, including sugar and rice.

Last week, the price of soft drinks moved up from 100 fils for a 33 ml can to 150 fils, causing concerns that more products would be sold at a higher prices.

The government had to face the wrath of the lower chamber of the bicameral parliament following the publication of a report about a possible increase in fuel prices.

A standoff between the MPs from all political societies and the government resulted in the staging of a rally by 12 societies to protest higher living costs.

However, the government denied that it had decided to increase prices, and said that the report was part of a study it had commissioned about economic options to address possible difficulties.