Following ongoing discussions with Yemen’s private sector, the Yemen Economic Reform Team (ERT) called on the government today to lift its monopoly on fuel imports and to ensure business’ unfettered ability to distribute this strategic commodity throughout the entire country. As the humanitarian crisis in Yemen worsens, free market solutions for fuel distribution will both stabilize and reduce prices in all Yemeni provinces, and ease the people’s suffering.
Fuel is absolutely vital to sustain Yemeni lives. It is the source for power generation, critical for hospitals, food storage facilities, water production and distribution, and is key to the operation of what remains of the Yemeni industries who employ many in the Yemeni population. Drastic shortages and high prices have made fuel a strategic commodity, and has become a humanitarian issue due to its central importance in supporting livelihoods.
The private sector has proven its ability to operate within the conflict. Liberalizing Yemen’s oil sector and allowing the business community to import and distribute fuel would relieve the hardship caused by the scarcity and high prices of oil products. Supply and demand economics is what the private sector knows best. Freeing them to do their job would lead to:
- Sufficient quantities of fuel at competitive prices for all Yemeni people in all provinces;
- Reduced corruption through disincentives to participate in the black market; and,
- Improved efficiency of Yemeni seaports, enhanced revenues through competition, and increased imports.
The ERT is a 25-member team of leading Yemeni business men and women, representing every major sector of the Yemeni economy, and dedicated to the reconstruction and recovery of Yemen. ERT has promoted the voice of the private sector since 2012 through participation in high-level discussions of the country’s future transition, including the National Dialogue Conference and the Friends of Yemen events. During the conflict, the ERT has served communities across Yemen through humanitarian assistance and providing goods and services in the absence of local government. It also surveyed damages to private sector installations and factories and documented complaints from businesses.