Houthis Up Gas Prices to Obstruct Efforts to Stabilize Yemeni Rial

  • 8/5/2018
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Houthi militias increased gas prices once again on Saturday in areas under their control, which includes the Yemeni capital, Sanaa. Other than adding to the suffering of Yemenis, the increase is said to be in retaliation and targeting efforts of the internationally-recognized government and the Central Bank of Yemen to stabilize a plummeting local currency. The Aden-based Central Bank’s Board of Directors had earlier this week approved withdrawing the first installment of a Saudi deposit meant to shore up the Yemeni Rial. Houthis upping gas prices saw the 20 liters gallon spike up to 8 thousand Yemeni Rials (the dollar averages at about 530 Riyals). Before Houthi coupists waged a civil war in 2014, the rate for a 20 liters gallon stood at 3500 riyals. The increase caused widespread resentment among Sanaa residents and locals living in Houthi-run provinces, seeing that the increase is unjustifiable. Yemenis complained that they already suffered from high living costs in Houthi-run areas. Workers at gas stations in Sanaa accused Iran-backed Houthi militias, who control fuel imports, of seeking to increase funds pumped into their war effort at the expense of doubling the suffering of the local population. With the increase put into effect, the gap of selling price points in Yemen widened. Gas sold in coup-run areas is about 60 percent more expensive than that which is sold in government-controlled areas, such as the Marib liberated province. Economists estimate that the group earns about $3.5 million a day off of the oil markets in territories it controls. Traders in Sanaa told Asharq Al-Awsat that transport costs for people or goods are likely to see an increase by at least 20 percent as a result of the Houthi fuel price hike. Arbitrary royalties imposed by militiamen also force trades to increase prices on merchandise for their businesses to break even. The Yemeni riyal witnessed over the past few weeks major depreciation against foreign currencies, which led to double-digit price hikes in costs of living.

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