Fuel prices reduced by 29 percent
The company stated that the new price for one liter of petrol is YR 125 (about USD 0.58) down from YR 175. However, the price of diesel will double to be YR 100 per liter
A source from the oil company told the Yemen Times that the new prices came into effect on Wednesday at 3pm.
Yemen has witnessed a serious shortage in oil derived products due to pipelines carrying crude oil being frequently bombed in a number of areas. The crisis has allowed the black market to flourish and had forced the government to increase the price of oil products by 125 percent.
“This was a political decision rather than an economic one, whereby the state has decided to share the citizens’ burden of economic hardships through this fuel subsidy,” said the Minister of Oil, Hisham Sharaf.
The state is importing fuel today at a price of YR 3,900 per 20 liters and has been selling them at YR 3,500 until yesterday. However, with the decrease in prices the state will cover the difference of YR 1,400 per 20 liters.
“The good news is that we are hoping to recommence the Marib pipeline production, which since it is local product will cost a little less as production of each liter of Yemeni oil will cost YR 160 per liter compared to YR 195 for the imported fuel,” said the minister.
Cars have been lining up around gas stations since the news of the decrease in prices came out, in fear that this is a temporary decision. The delivering of fuel services was delayed until 3pm whilst the Ministry of Oil carried out an inventory of the remaining fuel bought at the earlier price in order to compensate the gas stations.
The increase in diesel prices was made to stop the smuggling of diesel on the black market. Moreover, starting from Saturday the Ministry of Oil will ensure abundance of fuel and diesel in the market.
Many Yemenis expressed their happiness about the reduction in fuel prices.
Manea Soleiman, a local from Sana'a, told the Yemen Times that the decision is considered a countdown towards the alleviation of Yemenis' suffering, indicating that this price cut will reflect positively on all Yemenis.
Dr. Mohammed Jubran, a professor of economics at Sana'a University, told the Yemen Times that the decision will produce a positive reaction among Yemenis and the private sector. He pointed out that the step will help fight corruption in oil products that costs Yemen about YR 3 billion (nearly USD 14 million) annually.
Jubran indicated that the decision will standardize the prices of petrol, diesel and kerosene in all governorates.
A government report by the Ministry of Oil, showed that Yemen incurs a loss of USD 15 million daily each day that pumping of oil is prevented from the fields in Marib governorate. The pipelines in the Marib area have been attacked repeatedly over the last few months.