Sana'a: The Yemen Oil Company has issued a clarification regarding the recalculation of petroleum product costs, emphasizing the significant impact of recent global market fluctuations on local prices.
According to Yemen News Agency, the recent changes in global oil markets have been primarily driven by geopolitical tensions, specifically the US-Israeli actions against Iran, which have resulted in disruptions and shifts in global supply and demand. These factors, coupled with costs related to shipping, marine insurance, and transport, have directly affected the cost of petroleum products in Yemen.
Yemen, despite being an oil-producing country, has been constrained by a Saudi-led blockade and aggression for over a decade. This situation has left the nation dependent on imports to meet its petroleum needs, as it is deprived of its oil wealth and revenues from crude oil sales. The sanctions and plunder of resources have further exacerbated this dependency.
The company explained that imported petroleum products are subject to global market fluctuations, with costs recalculated based on international prices and actual supply data. The Yemen Oil Company's responsibilities are limited to managing inventory, regulating imports, marketing, and recalculating costs. Due to the blockade and sanctions, the company cannot import directly and relies on private traders for petroleum products.
In the past six and a half months, despite rising global prices, previously imported stocks helped stabilize local costs. These reserves met market demand without reflecting the recent increases in import costs. The company assures that any rise in costs is temporary and linked to global price changes. It continues to review costs in line with market fluctuations and invites proposals from importers and companies capable of supplying petroleum products at lower costs.
