SANAA, 13 Jul -- The government is planning to increase the price of gasoline by 30 percent and diesel fuel by 25 percent, Marib Press news website said. Economists have urged the government not to cave in to international pressures to cut fuel subsidies saying the Yemeni economy “is suffering from structural flaws seen in the 14.2 percent decline of investment spending compared with general spending,” adding “Yemen’s ability to absorb donations, aid and foreign loans is weak amid an employment rate of 35.9 percent in urban areas and 40.0 percent in rural areas.” Local economists say “non-oil sectors grew by only 1.39 percent as GDP growth dropped by 2.93 percent in 2007,” and emphasized the importance of non-oil sector growth, adding “tax revenues on commodities and services dropped by 2.7 percent because the sales tax law was not fully enforced.”Government Plans to Increase Fuel Prices Before Ramadan
SANAA, 13 Jul -- The government is planning to increase the price of gasoline by 30 percent and diesel fuel by 25 percent, Marib Press news website said. Economists have urged the government not to cave in to international pressures to cut fuel subsidies saying the Yemeni economy “is suffering from structural flaws seen in the 14.2 percent decline of investment spending compared with general spending,” adding “Yemen’s ability to absorb donations, aid and foreign loans is weak amid an employment rate of 35.9 percent in urban areas and 40.0 percent in rural areas.” Local economists say “non-oil sectors grew by only 1.39 percent as GDP growth dropped by 2.93 percent in 2007,” and emphasized the importance of non-oil sector growth, adding “tax revenues on commodities and services dropped by 2.7 percent because the sales tax law was not fully enforced.”
