Aden (South24 Center)

The internationally recognized Yemeni government raised the price of imported diesel fuel on Tuesday (May 19) by 24.5%, marking the second fuel price increase within a single month, amid fears of wider repercussions for transport, food prices, and basic services in government-controlled areas.

Reuters quoted an official at the state-run Yemen Petroleum Company in Aden as saying that the price of a 20-liter canister of diesel increased to 36,000 Yemeni riyals, up from 29,500 riyals previously, an increase of 6,500 riyals.

According to the official, implementation of the decision began on Tuesday. The measure did not include any new increase in the price of imported gasoline, which the government had raised last month by 23.9%.

The official attributed the decision to the continued rise in global fuel prices, developments in the Gulf region, the closure of the Strait of Hormuz, and higher shipping and maritime insurance costs.

He said the measure was “temporary” and linked to the end of the crisis and the return of conditions to normal.

The Yemeni government has not issued an official statement on the latest diesel price increase so far. South24 Center could not independently verify the details reported by Reuters, and there has been no immediate official comment from the government or the Yemen Petroleum Company in Aden.

The diesel price hike came hours after the Yemeni government approved the implementation of a decision to raise the customs dollar exchange rate from 750 riyals to 1,550 riyals for non-essential goods, as part of measures it said were aimed at boosting public revenues, which have declined since the halt of oil exports more than three years ago.

The government said basic commodities, including wheat, rice, sugar, medicine, baby formula, and fuel, would remain exempt from customs duties.

Fuel prices have recorded consecutive increases over the past weeks in areas under the control of the Yemeni government. In Hadramout, the price of imported gasoline rose to 1,550 riyals per liter, up from 1,240 riyals previously, while the price of diesel climbed to 1,520 riyals, compared with 1,225 riyals.

In the capital, Aden, the Yemen Petroleum Company recently announced that the price per liter of both gasoline and diesel had reached 1,475 riyals, attributing the increases to import and shipping costs, as well as fluctuations in global oil prices.

Fuel prices in South Yemen are now approaching nearly one U.S. dollar per liter, despite the noticeable improvement in the exchange rate of the local currency over the past months. The dollar has fallen from around 2,800 riyals in August 2025 to approximately 1,550 riyals currently, but this improvement has not been clearly reflected in the prices of goods and services.

Residents have expressed growing fears that the latest increases could trigger a new wave of price hikes, particularly in transport, food, and basic services, amid the continued deterioration of purchasing power and the widening living crisis in the country.