Fuel prices in Yemen continue to increase sharply

Fuel Prices Hike in Yemen Forces Drivers to Raise Fares

A recent increase in fuel costs in Yemen has led drivers to raise their fares, further exacerbating the financial struggles of passengers. The Yemen Petroleum Company (YPC) announced a new round of fuel price hikes on April 16, increasing the cost of petrol and diesel by 24% to 1,475 Yemeni riyals ($0.98) per litre.

The YPC attributed the increase to regional tensions, including the Iran war, disruptions to shipping through the Strait of Hormuz, and rising transport and insurance costs for shipments to Yemen. The company stated that the price hike would be temporary and prices would return to previous levels once regional hostilities subsided.

However, drivers such as Abdullah Salem are facing significant challenges in maintaining their income due to the increased fuel costs. Salem, a 55-year-old driver, raised his fare by 100 Yemeni riyals ($0.06) on a routine trip from Mukalla to the city centre, prompting passengers to express dissatisfaction.

The YPC has defended the fuel hikes, citing that fuel is priced in local currency upon arrival in Yemen, based on the US dollar exchange rate at the time of purchase, in addition to transport and storage costs. Economists warn that the latest fuel hikes are likely to push up costs across several sectors, including food.

Mustafa Nasr, head of the Studies and Economic Media Center, stated that economic activity is likely to be affected across the board, with repercussions across multiple sectors. The company’s decision to raise prices has sparked concerns among passengers, who are struggling to make ends meet due to the already high cost of living in Yemen.

Source: Al Jazeera