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Yemen nearly doubles fuel prices to narrow deficit

Published on NewsOK Modified: July 30, 2014 at 9:55 am •  Published: July 30, 2014
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SANAA, Yemen (AP) — Yemen's government has nearly doubled fuel prices in an attempt to reform government subsidies and narrow a budget deficit.

According to new prices posted Wednesday in the capital, Sanaa, the government raised price of regular gasoline to 200 Yemeni riyals per liter (93 U.S. cents) from 125 riyals (58 U.S. cents). Diesel used for public transport and trucks rose to 195 riyals per liter (91 U.S. cents) from 100 riyals (46 U.S. cents).

That's on par to the U.S. average price per liter for gasoline, which is 92 cents — or $3.51 per gallon.

Past price hikes have led to street riots, but only scattered demonstrations were seen Wednesday in Sanaa. Security forces and armored vehicles were in the streets.

Yemen spent nearly $3 billion last year on fuel subsidies.