An alarming news report published by Saba, the state news agency, confirmed that for the first time since Yemen ventured on the oil industry market as an exporter the cost of its fuel imports has surpassed its oil revenues (export) by a staggering $40 million.
A Central Bank of Yemen report stated that for the first half of 2013, Yemen "export sales were $1.328 billion while the government spent $1.368 billion on imports for the first half of the year," thus creating a deficit.
CBY puts the imbalance to a drop in oil revenue of 26%, which can be explained by a series of attack against the country's oil infrastructures in the eastern province of Marib due to protracted tribal interference as well as dwindling oil resources.
The world’s 32nd largest exporter of oil, Yemen's oil production already declined by 21% since 2011, exacerbating the country's dependence on foreign imports to meet its fuel needs. Until 2010, well before Yemen was rocked by the Arab Spring movement, the impoverished nation was already importing 20% of its fuel needs, due to a lack of refining capacity.
Yemen's lack of foresight and its increased dependence on its oil industry to power up its national budget and inject foreign currency in its economy is now fast catching up.
Because the government has failed so far to reform its fuel import system, which is still controlled by elite groups Yemen has been left vulnerable to shifts in oil output and prices on international markets, and to volatility within the political system.