The Yemeni Cabinet has reduced the prices of fuel that were raised last week as part of economic reforms. The Cabinet lowered the price of petrol from 65 rials to 60 rials and the price of diesel from 45 rials to 35 rials, which means re-subsidizing the oil products. The hike of prices last week led to violent riots, which killed over 20 demonstrators.
According to SABA, the government aimed to alleviate the impact of the rise of prices of transports.
The government had promised to offset the increase of fuel price by reducing customs tariffs and raising state salaries. Yemen is gradually lifting subsidies on oil products as part of a World Bank-supervised reforms program started in 1995.
