Economists: Economic Committee measures will raise prices of oil derivatives, reduce Iranian fuel supplies to Houthi militias
English - Wednesday 26 June 2019 الساعة 08:19 am
Aden – NewsYemen.net
The Houthi militias found gaps and gimmicks to circumvent the economic committee procedures in Aden to import Petroleum Derivatives, pushing the committee to add new controls; economic experts said these controls will push fuel prices higher.
The economic experts underscored to NewsYemen that the Economic Committee's ban for three ports at the level of importing oil derivatives would push companies in Aden and in the Houthi controlled areas to move east to import the oil derivatives at high prices, be paid later by the people.
They made clear the recent measures taken by the Economic Committee in Aden would limit the supply of Iranian fuel to its militias in Yemen so as to pressure the militias economically.
They added that the Economic Committee overlooked the role of the Aden Refinery Company and Yemen Oil Company, which became outside the State's control, the companies possess the potential to provide fuel at cheap prices that enable them to break traders' dominance on an oil derivatives market.
The Economic Committee in Aden has stopped oil derivatives' importers, agents, companies and shipping offices importing oil derivatives from the ports of the Sultanate of Oman and Iraq and UAE-Hamriya port, stipulating a certificate of origin for new shipments.
The Committee recent actions came amid the discovery of loopholes in its control mechanisms for the fuel market, were exploited by the Houthi militias to circumvent them in formal methods.
Qualified Oil companies affiliated with the militias managed to enter eight fuel vessels in forged documents, including the decreasing value of the national currency to Y.R 570 per a dollar.
The Economic Committee in Aden considers that the oil trade derivatives is the main reason for increasing speculative attacks on currencies, according to the Committee's estimates, the oil derivatives represent 60 % of the domestic demand for dollars.
According to a brief report on the economic situation of Yemen, issued by the World Bank, "NewsYemen got a copy of it, the value of imports of oil derivatives during the last year reached $ one billion and 542 million by 4 million and 283 thousand dollars per day.
The majority of the oil imported quantities through these companies are part of the support of the Iranian government, which represents the most important source of Iranian support for its arm in Yemen - the Houthi militias - some free support and others at preferential prices.
The latest report said the experts identified a small number of companies inside and outside Yemen operating as front companies using false documentation “to conceal a donation of fuel” to an unnamed individual on the U.N. sanctions blacklist.
The panel said it found that the fuel was loaded from Iranian ports under false documentation to avoid required U.N. inspections, and “the revenue from the sale of this fuel was used to finance the Houthi war effort.”
