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๐Ÿ‡ถ๐Ÿ‡ฆ Qatar /Economy & Trade

Fuel prices soar on back of Iran war, leaving Yemeni labourers with no work

From Al Jazeera · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Fuel prices in Yemen have skyrocketed due to the ongoing regional war, significantly impacting construction laborers like Fuad Mohammed.
  • The price of diesel has nearly doubled, causing a domino effect that increases the cost of all fuel-dependent goods and services, halting many construction projects.
  • Many construction workers are left jobless, struggling to provide for their families and even lowering their daily wages in a desperate attempt to find work.

In Taiz, Yemen, construction laborer Fuad Mohammed, 46, describes a worsening situation in his industry, exacerbated by the decade-long civil war and the recent US-Israel war on Iran. "We can barely eke out a living for our families," Fuad told Al Jazeera, highlighting the severe economic fallout impacting the Middle East.

We can barely eke out a living for our families.

โ€” Fuad MohammedDescribing the economic hardship faced by construction laborers in Yemen.

The ongoing regional conflict has devastated economies, with government-controlled areas of Yemen bearing a heavy burden. Fuel prices have surged dramatically; 20 liters of diesel, which cost 25,000 Yemeni riyals ($17) in January, now command 45,000 riyals ($30). This price hike has triggered a cascade effect, inflating the costs of all goods and services reliant on fuel and transportation, crippling the construction sector.

Consequently, numerous construction projects across eastern and southwestern Yemen have ground to a halt. Fuad, who previously found work for about two weeks each month, has now gone several months with minimal employment. "The price hikes in building materials have frustrated both homeowners and construction laborers," he explained. "Those who want to build find that their budgets are no longer enough, and we are left with no work."

The price hikes in building materials have frustrated both homeowners and construction labourers. Those who want to build find that their budgets are no longer enough, and we are left with no work.

โ€” Fuad MohammedExplaining the impact of rising costs on homeowners and the subsequent lack of work for laborers.

Homeowners are pausing projects, waiting for prices to drop, while contractors are delaying work due to client requests. The cost of basic materials has also soared: a truckload of sand increased from 130,000 riyals ($87) to 190,000 riyals ($127), and a meter of window glass rose from 90,000 riyals ($60) to 130,000 riyals ($87).

I also work with construction contractors, but most of them have paused their projects at the request of homeowners. When I call them, they tell me they are waiting for regional conditions to improve.

โ€” Fuad MohammedIllustrating how homeowners' decisions to pause projects affect contractors and laborers.

Fuad's personal situation is desperate. Relying on daily wages, he struggles to afford basic necessities for his family. He has even lowered his daily rate from 25,000 riyals ($17) to 20,000 riyals ($13) in a bid to find work, stating, "My situation is getting worse every day."

My situation is getting worse every day.

โ€” Fuad MohammedExpressing his personal worsening financial condition.
DistantNews Editorial

Originally published by Al Jazeera. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.