Cabinet raises allocation of domestic consumption of diesel to 40,000 metric tons

The Cabinet recently approved a raise of the allocation of domestic consumption of diesel fuel in the local market by 40,000 metric tons to help alleviate the current diesel crisis in the domestic market. It also approved the development of a refinery in Aden with a refining capacity of 150,000 barrels per day of oil derivatives.

The Cabinet, in its regular meeting on Thursday under the chairmanship of Dr. Ali Mohamed Mugawar, approved on providing an operational reserve for diesel by a quantity of 70,000 metric tons and 50,000 metric tons of benzene.

They also permitted the formation of strategic reserves of oil derivatives to meet the needs of the country for two months, as well as agreed on the abolition of intermediaries in the supply of electricity and cement factories that followed the state in diesel and oil.

In addition, they also directed to study the appropriate alternatives to the formation of the reserve in terms of establishing strategic storage of private enterprise and look for other alternatives to stocks and determine the necessary funding and confiscation.

Banks have also provided assistance to facilitate Aden Refineries Company with $300-400 million to cover local market needs of diesel and oil through imports from abroad and insured by the Ministry of Finance, as approved by the Cabinet.

The Cabinet stressed the Minister of Oil and Materials to bind the foreign oil companies operating in the Republic of Yemen and the companies operating subcontracts to purchase the oil from the Yemeni Oil Company directly at world prices. The Cabinet also prevented the use of diesel fuel in operating power plants that operate diesel, in order to conserve reserves, as well as instituting a monthly allowance of electricty.

The proposal for importing of unleaded gasoline is not be less than 90 percent to insurance needs of the country of this material, as agreed by the Cabinet in its regularly meeting and that the Ministry of Oil must allocate stations to sell this kind of gasoline at global prices. 

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