227 billion riyals Houthi militia’s annual profits from the fuel trade
English - Monday 06 July 2020 الساعة 04:36 pm
Sanaa, Newsyemen, private:
Fuel imports have become the most profitable sector for the Houthi militia, despite the decrease in the quantities of demand for oil derivatives by about 70% in their areas of control as a result of the cessation of many projects, investments, power plants and the abandonment of farmers and fishermen from their economic activities.
The domestic demand for fuel before the Houthi militia coup was 544 thousand tons per month, but the demand decreased in the areas of the Houthi militia due to the economic recession to 140 thousand tons per month in the past five years, and 30 thousand tons in the areas controlled by the legitimate government.
The distribution of fuel and petroleum products is one of the main sources of revenue for the Houthi militia, where they canceled fuel subsidies on July 27, 2015, a year after they turned against the country, under the pretext of dropping the price dose of fuel and easing its import restrictions.
The Houthi militia monopolizes the market for oil derivatives in the north, and at the prices they set, with the absence of competitors according to financial indicators, the resources of the Houthi militia come from the fuel trade from three voluntary channels: “fees, taxes, sales profits, and the free monthly Iranian fuel grant.”
Since 2015, fuel price rates have recorded very high values that burdened the consumer, individuals and projects, and data indicate that the price of diesel increased from 150 riyals per liter at the end of 2014, reaching the beginning of 2020 to 438 riyals, an increase of about 192% compared to the end of 2014, and prices increased of petroleum from 158 riyals per liter at the end of 2014 to 379 riyals at the beginning of 2020, an increase of 140%.
A source in the Yemeni Oil Company in Sanaa confirms to "Newsyemen" that the profits of the Houthi militia from sales of oil derivatives reach twice as much and sell about 140 thousand tons per month, equivalent to 49 million liters, and the average price of a liter of diesel and oil at 400 riyals, monthly sales reach 19 billion and 600 million riyals, half of which are cost, transportation and taxes, and the rest are 9 billion and 800 million riyals monthly profits.
With a simplified calculation process, 9 billion and 800 million riyals in the months of the year equal to 117 billion riyals and 600 million riyals annually net profits, in addition to 28 billion and 812 million riyals in revenue from oil derivative fees in the port of Hodeidah.
The report of the United Nations experts on Yemen indicated that the Houthis impose 48 riyals and 19 fils on every liter of oil derivatives, including 31.19 riyals for customs wages, 10 riyals for the Yemen Oil Company commission, 2 riyals for a war effort, and 2 riyals per liter for different wages.
It is reported that the United Nations is investigating the provision of about $ 30 million a month in fuel to the Houthi militia by Iranian fictional companies, bringing Iranian financial flows from the free fuel grant to the Houthi militia to $ 360 million annually.
The resources of the Houthi militia from the sales of the Iranian "free" oil grant are 360 million dollars, and at an exchange rate of 550 riyals to the dollar, equal to 198 billion riyals annually.
The fuel trade is only one part of the practice of corruption of the militia, generating billions of riyals, while the majority of the people struggle to starve to death by the militia stopping the salaries of employees, igniting multiple economic crises, and trading in citizen's food, as is happening in oil derivatives.
