SANAA, 6 January 2005 — Yemen’s Parliament yesterday approved a 2005 state budget that included a package of unpopular price increases of fuel products, parliamentary sources said. The budget was approved by a vote of 161 in favor, 25 against and six abstentions. However, 109 opposition lawmakers of the 301-seat chamber withdrew in protest as the voting began.
According to government sources, the price of petrol would be hiked up from 700 rials ($4.03) per gallon to 1,000 rials ($5.76), while a gallon of diesel will cost 800 rials up from the current 340-rial price.
The planned price rises were carried out in response to stepped up pressure for reforms from the World Bank and other donors, a senior government official told DPA. The budget is a continuation of a structural reform program initiated by the government in 1995.
