The coalition-formed government in Aden, Yemen, recently implemented a new price increase on oil derivatives, specifically gasoline, causing discontent among the local population. The cost of a 20-liter gallon of gasoline soared to 28,000 riyals, leading to concerns about the impact on daily living expenses.

The surge in fuel prices was primarily linked to the depreciation of the local currency against the US dollar, with the exchange rate surpassing 1,850 riyals in Aden and other southern provinces. This move followed the Aden-based Central Bank’s decision to relocate Yemeni banks from Sanaa.

Economic experts view the government’s action as a desperate attempt to avoid economic collapse, as they have failed to implement effective reforms to stabilize the currency. The price hike is expected to have ripple effects, affecting the prices of goods and transportation, and further aggravating the economic challenges faced by citizens.

Despite the government’s efforts, the situation remains dire, highlighting the urgent need for sustainable economic solutions to alleviate the burden on the population.