Top Stories International report: The levies of the coup militias and their black markets raise fuel prices

International report: The levies of the coup militias and their black markets raise fuel prices

A new international report confirmed that the noticeable rise in fuel prices in areas under the control of the Houthi militia is caused by the increase in logistical costs, the double imposition of import taxes, the setting of a higher profit margin and the fact that most fuel quantities go to the black market.

While the report stated that the quantities of fuel are sold at an inflated price, which sets a disproportionate level for the official price, with an increase of 76 percent, it stressed that most of the quantities come from areas under the control of the legitimate government, but they go to the parallel market run by the Houthi militias.

The report on humanitarian forecasts issued by the “Akapis” Center stated that fuel is available and no shortage is observed, but the high prices that consumers have to pay for it affect the purchasing power in Houthi areas, especially those whose salaries have not been paid.

The report suggested that Yemenis will witness more interruptions in services that depend on uninterrupted energy supplies. “The continued lack of access to low-priced fuel may limit the scope and type of services provided by health facilities,” he said. The same applies to the provision of clean drinking water at affordable prices, which may be affected by the high costs of water pumping and trucks.”

The report indicated that the arrival of limited quantities of fuel through the port of Hodeidah led to a shortage of fuel in government-controlled areas, “where merchants are keen to send fuel to Houthi areas, in order to earn more money.”

He pointed to several factors that determine the cost of fuel in areas under the control of the Houthi militia, including international fuel prices and the cost of importing it, fuel import taxes and customs, port and storage fees, and land transport, and then additional taxes imposed by the militias on tankers coming from government-controlled areas.

The report predicted that higher transportation costs would, for example, cause people to refrain from seeking life-saving assistance and medical treatment, and that access to services and other support programmes, such as food distribution points or vouchers, would likely be reduced, exposing more people. to social and economic risks.

It is also likely – according to the report – that companies will have to reduce their production capacity because price increases affect private sector businesses whose goods need to be transported or that use fuel as a main input to operate their production lines or services.

Increases in fuel prices or limited access to fuel can disrupt supply chains to local markets and consequently the availability of some goods, affect the productive capacity of companies, and potentially reduce livelihood opportunities. As stated in the report.

It is likely – according to the report – that agricultural production will be affected by the increase in fuel prices, as the increase in the cost of irrigating land outside the rainy season, in addition to the increase in transportation costs and agricultural inputs, will lead to a significant decrease in agricultural production.

“Although the Houthis continue to commit to supplying fuel import revenues to the payroll account, it is stated that it is likely that the revenues will not be used to pay salaries, so the purchasing power of public sector employees will remain limited,” the report said.

According to the authors of the report, the costs of implementing humanitarian operations are likely to rise, and humanitarian budgets and program implementation will likely be affected by increased operating costs in all sectors of the intervention.

Higher fuel prices will lead to higher prices for transportation and activities such as food distribution, wheat milling, good storage of goods, activities powered by generating energy, hospital management and health services.


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