Yemeni government preparing for price liberation

The Yemeni government is getting ready to take measures to reduce subsidies on petroleum derivatives, wheat, electricity, and water within applying a price liberation policy agreed upon with the World Bank and the International Monetary Fund.

Sources in Sanaa expected an average increase in the prices of these items of between 20% and 30% starting in July.

The Yemeni government's program, by which it obtained the Deputy Council's trust, referred to the importance of raising prices, within a reform plan whose items were postponed, as a one of the important tools to confront the increasing budget deficit because of low petroleum prices.

The Yemeni government is showing a concern for studying the effects of lifting the subsidy by planning to treat its effects through social programs that will ease the damages higher prices will cause poor people.