This argument about fuel costs is pretty stupid. At the end of the day its all the same thing to the Bahraini Government, give GF a fuel subsidy to show better figures but you'll lose out somewhere else, namely, BAPCO or whoever else is supplying jet fuel. (I'm pretty sure its BAPCO). So it doesn't really matter whether they give GF a subsidy or not, there's no incentive to any of it really, you can pretty much take the millions GF is about to get from the govt and call it a rebate for the fuel costs. Those millions come from BAPCOs profits anyway, and ALBAs, and BATELCOs, etc. etc.
So in reality GF is getting everything cheap. I remember hearing that when the EU started complaining about EKs cheap fuel the government stopped subsidizing it and started purchasing all empty seats in first class during all flights. Doesn't make a difference, its all one giant pool of money.