Officials at the ministry of finance have revealed that as Yemen is facing an ever mounting deficit, which is threatening to bankrupt the country unless something drastic is done to improve Yemen's cashflow, the government is leaning toward putting an end to oil subsidies as to generate a new source of income.
Earlier in April officials explained that the International Monetary Fund (IMF) required of Yemen to slash its oil subsidies by at least 50% of it wanted to be granted an extra $200 million loan by the organization.
IMF said in April that Yemen would not qualify for the loan unless its government agrees to reform its oil subsidies system, by freeing vital state revenues and thus increase Yemen financial solvency.
While the finance ministry is looking at alternatives, insecurity is the eastern province of Marib is proving a great burden, essentially since the unrest and continuous attacks against the state oil and power infrastructures are costing funds which were earmarked for development programs.
The acts of sabotage against Marib pipeline have cost the state an estimated $480 million this year, a level of lost revenues which Yemen cannot possibly weather, not given the financial strains it is currently under.
But while slashing down oil subsidies make sense from an economic point of view on paper, officials fear that the increase in price at the pump will lead to mass protest across the country.
Back in 2011 when the former government announced it was raising the price of petrol, demonstrations were staged up and down the country.
Protesters in the southern city of Aden were so enraged by the news that the state ended up returning petrol price to what it was, avoiding a revolt.