The committee on diesel in Yemen's House of Representatives on Monday passed a bill to increase the diesel price from 50 YR to 100 YR per liter.
It put forward two options for the government in this context; the first was suggested by one hundred MPs to increase the diesel price to 75 YR per liter throughout a year to help address the electrical blackouts within the state budget.
The second option was to steady the price of diesel at 50 YR per liter and form a joint governmental committee to put aside 50% out of the hiked price.
It urged Parliament to commit the government to put an end to the monopoly of sea and land transportation of oil products, open tenders for transport companies, and reconsider contracts with traders involved in smuggling oil products to abroad.
Furthermore, the committee stressed the importance of reconsideration into oil quantities given for special groups and authorities, especially in Makha, a port area in Taiz, which is notorious for smuggling oil products to outside Yemen.
Recently, the government submitted the bill to Parliament and suggested to increase the diesel price in return for exempting farmers from taxes.
After discussions, the committee and the government agreed to put aside 20% of the increased prices and then issue a law over that and providing technical assistance to the farmers.