Taxis are the most comfortable and easy way to get around in Manama and Muharraq. Due to lack of serious alternatives, they are often also the only way to get around. Manama from/to Bahrain Fort, the airport or Muharraq is usually around 5 BHD (as of 2012). Inner-city trips range usually around 2 or 3 BHD. Note that there are night supplements and suppelements for rides from/to the airport.
Taxis are easy to find at all main streets, but of course there are also taxi stands. The main ones are at the airport and in front of Bab Al Bahrain. Directions are given by buildings, roundabouts and other well-known places rather than by street names. Taxis are metered, so you should not be overcharged when the meter is on (I recommend you to insist on it, if the driver does not want). However, some drivers like to apply the supplemental airport fare even if you are not going to or coming from the airport....
Bahrain in general is not a pedestrian-friendly country and like in other Gulf countries, crossing a street can become an adventure on its own. Bahrainis are only used to walk very short distances, for everything else, they use a car or taxi. Be aware that outside of the city centre, there are few pedestrian crossings, even in places where they are urgently needed. On the streets to Muharraq, there are usually no sidewalks - therefore take care, if you decide to explore Manama by foot.
Bikes are rarely used as well in Bahrain, but also have a different status compared to that in Europe. You will sometimes see people going by bike, but these are usually poorer expats who can not afford a car or taxi rides, but nevertheless depend on a vehicle to go to their work. That means, that bike riding is often associated with poorness rather than sport or a convenient way of transport.
You may ask yourself, why people do not use public transport. Well there is a bus system, but this only connects Manama with then outskirts or far away places. There is no public transport within Manama or to the city centre of Muharraq.
In Bahrain, taxi drivers are mainly locals and to me, this is really the problem why taxi are so expensive and ineffective in Bahrain.
In other Gulf countries, taxi are driven by foreigners and they respect the rules established by the local authorities. In BH, systematically, the driver will refuse to put on the meter and will try to cheat you badly !
My advice, rent a car or ask your hotel the fair ! the main intl hotel have a fixed price for taxi ride. For example, from Gulf to the Airport, the price is 4 BD and not 10 as one driver ask me !
From Airport to Central Manama (Bahrain International Hotel/Bab al Bahrain) BD4 .00 to 7.00 Around US$10.00 to 18.00 which is quite high considering the distance from Airport to CBD.
Now the impliment the Meter with Airport Surcharge BD2.00 Plus the meter and BD1.00 Plus Meter for the Taxi's waiting outside Hotels in the City. Flag Fall is BD1.00 and the 200 Fils per km afterwards 6.00 AM till 10.00 PM 50% Extra (1.50BD & 250 Fils) from 10.01 PM till 5.59 AM
4 Departures per day each way via King Fahad Causeway
4.000 BD oneway 8.000 BD round trip
From the Parking Lot opposite Gulf Gate Hotel, MAnama Central