Families in Sanaa are facing higher food and transport costs following the first fuel price increase in four years. Ahmed Yahya, a 28-year-old taxi driver, reported that he now pays 5,250 Yemeni riyals (approximately $9.80) for petrol, up from 4,750 Yemeni riyals ($8.90). The Houthi-run Yemen Petroleum Company attributed this 10 percent increase to a global rise in fuel prices, which has been influenced by various regional conflicts, including the recent fighting in Yemen and attacks on Saudi Arabia.
Yahya expressed concern over the impact of this price hike on his family's finances, stating that their monthly food expenses would rise from 75,000 Yemeni riyals ($140) to at least 85,000 Yemeni riyals ($159). The ongoing conflict in Yemen has already left 18 million people facing acute food insecurity.
The International Monetary Fund (IMF) reported in April that Yemen's internal conflict has led to significant economic vulnerabilities, with many families struggling to access basic necessities. The renewed fighting has also increased transportation costs, as truckers avoid routes near conflict zones, leading to longer delivery times and higher prices for goods.
Saleh Abdullah, a shopkeeper in Sanaa, noted that the increased transportation costs are passed on to consumers, affecting the prices of essential items like flour and baby milk. Ibrahim Abdu, an employee at a customs checkpoint, mentioned that the number of trucks arriving in Sanaa has decreased due to the fighting.
Ahmed Mohammed, a former humanitarian worker, described the fuel price rise as a "hunger multiplier," exacerbating the difficulties families face in affording basic food items. The UN Refugee Agency (UNHCR) has warned that ongoing violence could trigger a humanitarian crisis as more people are displaced.
Wafiq Saleh, an economic researcher, stated that the fuel price hike will likely lead to significant inflation, particularly affecting vulnerable populations. He explained that the increase in fuel prices will have a cascading effect on the prices of various goods and services, impacting sectors such as agriculture and transportation, which rely heavily on fuel. Small and medium-sized enterprises may also struggle to absorb the increased costs, potentially leading to higher prices for consumers.