Fuel prices soar on back of Iran war, leaving Yemeni laborers with no work
The ongoing regional conflict has had a devastating impact on fuel prices across the Middle East, particularly in Yemen where construction projects have ground to a halt due to rising costs. The situation is dire for thousands of laborers who rely on daily wages but lack employment opportunities.
Taiz, Yemen – Fuad Mohammed has been working as a construction labourer for over 25 years and has seen his livelihoods deteriorate significantly since the war in the country started more than a decade ago. “We can barely eke out a living for our families,” he told Al Jazeera.
The conflict has damaged economies across the region, with government-controlled areas of Yemen bearing a heavy burden as commodity prices soar. Fuel is one of the hardest-hit sectors, and its price hike in January from 20 litres (5.3 gallons) to 45,000 riyals ($30) has triggered a domino effect driving up costs for all goods and services dependent on fuel.
Construction projects across Yemen’s east and southwest have ground to a halt due to rising fuel prices, leaving laborers with no work. Pausing construction is not an option; most contractors have paused their projects at the request of homeowners who are waiting for prices to drop.
Fuad recalled that he briefly found work in May for a woman who had saved money to build a home for her family, but when price increases hit the market, she paused construction to wait for prices to drop. “I also work with contractors, but most have paused their projects at the request of homeowners,” he added.
The situation is exacerbated by Yemen’s central bank bifurcating between Aden and Sanaa, leading to two different exchange rates operating in the country. This has resulted in a mismatched supply and demand for fuel, driving up prices further.
Yemeni labourers are facing an uncertain future as they struggle to make ends meet due to rising fuel costs. Fuad’s situation is desperate; relying entirely on daily wages but having no work, he can barely provide basic essentials for his family.
The impact of the conflict will be felt in the coming period when imports are made at new prices. The Houthi group has avoided an increase in the price of fuel due to its limited inventory from previous months, which is why local markets haven’t been affected yet.
However, experts warn that the situation may worsen as regional tensions and increased maritime insurance costs continue to drive up global fuel prices. “Price increases aren’t new in Yemen, but I believe this current surge is regional,” said Wafeeq Saleh, executive director of the Taiz Center for Yemeni-Gulf Studies.
The government has promised that prices will come down once the conflict ends, and many laborers are choosing to believe them. However, experts caution that it may take time for construction projects to resume, and in the meantime, laborers like Fuad Mohammed face a bleak future.
Source: Al Jazeera
Based on reporting from Al Jazeera.
Read original source
