Yemen nearly doubles fuel prices at the pump, cutting subsidies to narrow budget deficit

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Yemen's government has nearly doubled fuel prices in an attempt to reform government subsidies and narrow budget deficit.

According to new prices posted Wednesday at the petrol stations in the capital, Sanaa, the government raised price of regular gasoline to 200 Yemeni riyals (93 U.S. cents) from 125 riyals (58 U.S. cents). Diesel used for public transport and trucks rose to 195 riyals (91 U.S. cents) from 100 riyals (46 U.S. cents).

Past price hikes have led to street riots, but only scattered demonstrations were seen in Sanaa on Wednesday. Security forces and armored vehicles also deployed in the streets.

The measures are part of a previously announced government austerity plan.

Yemen spent nearly $3 billion last year on fuel subsidies.