Aden Oil Company Hikes Diesel Prices 24.5% Amidst Economic Pressures

Aden, Yemen – The Yemeni Oil Company in the interim capital of Aden has increased the price of diesel fuel by approximately 24.5 percent, marking the second such rise within a month. This adjustment follows a governmental decision to more than double the customs exchange rate for the dollar.

A company official stated that the internationally recognized Yemeni government approved the 24.5 percent increase for imported diesel. The decision is attributed to a worsening supply crisis and escalating global fuel prices, exacerbated by regional tensions and ongoing conflict.

The new pricing took effect Tuesday, with a 20-liter jerrycan of diesel now costing 36,000 Yemeni rials (approximately $23.80), an increase of 6,500 rials from the previous price of 29,500 rials. The price per liter now stands at 1,800 rials.

This diesel price hike follows a previous increase in gasoline prices by 23.9 percent a month ago, which raised the price of a 20-liter jerrycan of gasoline to 29,500 rials. The company justified the diesel price adjustment by citing persistent global fuel cost surges due to heightened tensions in the Gulf region, the closure of the Strait of Hormuz, and increased maritime transport and insurance expenses. The company emphasized that this measure is temporary and contingent upon the resolution of the crisis and the normalization of conditions.

The latest increase, particularly its significant percentage, has raised concerns about its potential impact on transportation costs and the prices of goods and services in Aden and surrounding governorates. This decision comes shortly after the Yemeni government approved a more than 100 percent increase in the customs exchange rate for non-essential goods, a move aimed at bolstering public revenues which have declined since oil exports ceased over three years ago.

Government officials confirmed that the customs dollar rate has been raised from 750 Yemeni rials to 1,550 rials per dollar to support deteriorating public finances. Essential goods, including wheat, rice, sugar, infant formula, medicines, cooking oil, and fuel, remain exempt from customs duties, though indirect price effects on the local market are a concern.