In a bid to persuade the Parliament to approve the diesel price hike draft, the National Unity Government put forward on Tuesday a proposal to the Parliament saying that if the diesel draft is approved, the farmers will be exempted from taxes in exchange, local media outlets reported citing parliamentary sources.
The sources said that the draft will be debated and put for vote in the few coming days.
Earlier the year, the diesel bill was rejected by the Parliament under the pretext that it would take its toll on the farmers who account for the biggest segment of the Yemeni society.
The production of Yemeni oil was brought to a halt last year when frequent sabotage attacks targeted the pipelines, forcing the government to import oil from outside when it could least afford. As a result the price for 20 liter of oil went up to 2500 YR after it used to be for only 1500 YR.
However, the government could not hike the value of diesel because of the Parliament. But diesel is sold at the black market for more than what the government proposed because it's very hard to obtain it from the official gas stations.
Currently, 20 liters of diesel is sold officially for only 1000 YR and the government is trying to increase its price to 2000 YR.