In Yemen, war at home and in the region drives up prices

Sanaa, Yemen – Ahmed Yahya, 28, fills his taxi with 10 litres of petrol as he begins his workday early in the morning.

“I feed my taxi with fuel first so that it can help feed my family,” Yahya, a taxi driver, said as he wiped the dust from his front window at a petrol station on the outskirts of Sanaa.

Up until earlier this week, Yahya used to pay 4,750 Yemeni riyals, the equivalent of roughly $8.90 in Houthi-controlled areas of Yemen. The price had remained unchanged for about four years in territory under the rebel group’s control – including the capital Sanaa.

But then, on Monday, the Houthis announced a roughly 10 percent increase in the price of petrol, up to 5,250 Yemeni Riyals ($9.80). After years of economic misery, Yahya described the price hike as another “painful surprise to an already devastated people”.

The Houthi-run Yemen Petroleum Company said the diesel and petrol price increase was the result of a “global increase in fuel prices”, and promised that it would be temporary. The increase in global oil prices this year comes off the back of the impact of the United States-Israel war on Iran. But, more recently, the Houthis’ own capture of Yemen’s southern Red Sea coast from government forces last week, and attacks on Saudi Arabia, have played a major role in increasing prices.

“When I heard the announcement of the new fuel price, I was shocked and frustrated. We’re hardly surviving, and this price increase will make survival even harder,” said Yahya, as he lamented another burden in a country where 18 million already face acute food insecurity – a lack of reliable access to enough food.

Yahya, a father of three, has been working as a taxi driver for five years. Although the job helps make ends meet, he feels financially insecure, especially with the ongoing changes in food and fuel prices.

“My family spend about 75,000 Yemeni riyals [$140] a month on food expenses such as flour, rice and cooking oil. With the fuel price rise, we will need at least 85,000 Yemeni riyals [$159] a month for the same food items,” said Yahya.