Yemen - 3.1 Fuel | Digital Logistics Capacity Assessments

Fuel Overview

Yemen is a relatively small oil producer and does not belong to the Organization of the Petroleum Exporting Countries (OPEC). Unlike many regional oil producers, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government.
Income from oil production constitutes 70 to 75 percent of government revenue and about 90 percent of exports. Yemen contains proven crude oil reserves of more than 4 billion barrels (640,000,000 m3), although these reserves are not expected to last and output from the country’s older fields is falling, a concern since oil provides around 90% of the country's exports. In 2023, Yemen's total oil production averaged about 15,000 barrels per day (bbl/d), down from 300,000 bbl/d estimated for 2010. Production has been declining extremely due to the complex political conflict in the country.
Fuel is managed by the Ministry of Oil and Minerals through its owned company Yemen Petroleum Company (YPC). Since the political conflict in the country, the country is divided into two authorities one in north and south which led to have two distinct Yemen Petroleum Company (YPC). All importers of fuel should be obliged to handover the fuel imported to YPC for distribution. The following table show the locations of YPC branches and its storage capacity.

List of YPC fuel stations and storage in North of Yemen

Location	YPC Facility Storage Capacity (mt)	Number of YPC Fuel Stations	Fuel Distribution to the market (Litre/Day)	YPC J A1 Storage Capacity (Litre)
Sana’a	58,000	16	6,000,000	1,000,000
Hodeida	100,000	1	2,500,000	N/A
Ras Issa	45,000	N/A	0	N/A

List of YPC fuel stations and storage in South of Yemen

Location	YPC Facility Storage Capacity (mt)	Number of YPC Fuel Stations	Fuel Distribution to the market (Litre/Day)	YPC J A1 Storage Capacity (Litre)
Aden	279,329	21	3,025,500	419,000
Marib	640,000	2	1,000,000	N/A
Shabwah	640,000	5	640,000	N/A
Mukalla	40,516	7	1,000,000	850,000
Sayoun	3,368,200	8	1,000,000	225,000
Al-Mahrah	1,200,000	7	1,000,000	N/A
Taiz	10,000,000	2	1,000,000	N/A
Al-Makha	13,061	2	1,000,000	N/A

Yemen is refining a few quantities of oil produced locally. Yemen is possessing two Refineries, one in Aden (80k barrel/day) and on in Marib (10k barrel/day). Most of the fuel is imported from outside of Yemen. The areas that fuel come from are UAE and KSA. Fuel is discharged in five seaports (Hodeida, Ras Issa, Aden, Mukalla, Nushton). Some of the main importers of fuel are listed herein under.

No.	Importer Name	Location	Contact Details
1	Ahqaf Hadramout General Contracting, Oil & Gas Fields Services	Hadhramaut - Al-Mukalla	Phone: +967 5 326030 – 5 388331
2	Hadramout International Energy Company Ltd	Aden	Phone: +967 2 349997
3	Aden Refineries Company.	Aden	Phone: +967 2 376 234 Email: aden-refinery@arc-ye.com
4	Aden Petroleum.	Aden	Phone: +967 2 370925
5	Yahya Al-Osaili Import Co. Ltd.	Sana’a	Tel. +967-1-450853 Email: info@alosaily.com
6	AL Zahra Trading and Agencies Establishment	Sana’a	Phone: +967-1-413436
7	TAMCO Petroleum Derivatives Corporation.	Sana’a	Phone: +967 1-634630
8	MOPC Oil and Gas Services Company.	Sana’a	Phone: +967 1 334440
9	Al-Sharafi Oil for importing petroleum derivatives	Sana’a	Phone: +967 1 428826
10	ATICO Trading Industry Co. ltd.	Sana’a	Tel. +967 1 613695 Email: info@atico-yem.com
11	Star Plus Yemen Co.	Hodeida	Tel. +967 3 270632 Email: petroyemen16@gmail.com

Fuel provision in Yemen faced many challenges and constraints since the start of the political conflict. During the onset of the political conflict the fuel supply to the country faced a blockage of roads which affected the transportation. In 2015, when the political situation become severe and damages to the ports, fuel strategic storage and ban to all imported shipments, fuel supply to Yemen tragically affected which led to scarcity of fuel. The warehouse of strategic fuel stock destroyed as will the main fuel station destroyed which led to shortage of fuel in the market. As well the Jet A1 strategic warehouse destroyed, also the Jet A1 plant in Sana’a Airport destroyed and fuelling airplanes stopped. However, the Jet A1 warehouse rebuild and fuelling airplanes now is available in Sana’a, Aden, Mukalla and Sayoun.

Fuel Pricing

Fuel price in Yemen is not stable and faced with many changing in price. Since the year of 2011 the fuel price was YER 75 (USD 0.3) for one litre of petrol and YER 50 (USD 0.22) (The exchange rate was USD 1 = YER 224). In the last quarter of the year 2011 after the political situation in Yemen deteriorated, the government applied a new price for fuel. The new fuel price was YER 175 (USD 0.7) (Exchange rate was USD 1= YER 247) for one litre of fuel.

During the years (2013-2014), the new government applied new lower fuel price YER 125 (USD 0.558) for one litre of petrol and YER 100 for one litre of diesel.

In July 2014, the Government of National Accord decided to withdraw the subsides to fuel, which led to increase in fuel price. The excuse behind this decision was that the government wanted to stop the smuggling of fuel and reduce the impact of economic crisis. The fuel price became YER 200 (USD 0.93) for one litre of petrol and YER 195 for diesel (exchange rate is USD 1= YER 215).

In 2015, when the political situation deteriorated again and new government took over the control in the North of Yemen, the fuel price was floated. This decision as well declared the removal of the subsides on fuel (e.i. custom, tax fees and road fund) and to add YER 5 to one litre of fuel for the funding of building electricity plant and oil port lasting for 24 months. The fuel price was YER 135 for one litre of fuel, but the fuel was not available, and fuel was sold in black market with a price of YER 500 for one litre.

In the below table shows the fuel price during the past years till the date.

Date	North Yemen			South Yemen (YER)
Date	Petrol YER/20L	Diesel YER/20L	Jet A1 USD/L	Petrol YER/20L	Diesel YER/20L	Jet A1 USD/L
11^th November 2023	9,500	9,500	1.2	25,000	30,000	1.30
16^th June 2023	9,000	9,000		20,400	20,400
05^th May 2023	9,500	10,000
10^th April 2023	9,500	11,000
February 2022	9,900			17,700
24^th December 2021				13,000	13,600
12^thJune 2021	8,500	7,900		12,200
03^rd June 2020				4,500	5,100
April 2020	5,900	6,900		3,300	4,400
12^th March 2019	7,300	8,600		7,000	7,000
12^th January 2019	6,900	8,200
15^th December 2018	7,900	8,900
November 2017	5,500	5,500
May 2017	4,300

In North of Yemen through Hodeida Port, the fuel price is determined by YPC in its conference on 10^th April 2022 at exchange rate USD 1 = YER 590 as the following:

Description	USD/Ton of Petrol	One Litre/YER	20 Litre/YER
Market average price of fuel	1,1199.1	473	9,466
Cost of shipping and marginal profit of export and import and insurance	130	55	1,100
Demurrage	14	6	119
Total cost arriving Hodeida Port	1,263.1	535	10,684
Customs Fees	122.9	52	1,030
YPC and Storage fees	24.3	10.5	210
Transportation Cost	35.5	12	240
Fuel Station Fee	52.0	22	440
Total Cost sold to Consumer	1,498.3	630	12,604

Fuel Prices in North of Yemen per Litre as of: 19 NOV 23 *(local currency and* *USD - $*)
Petrol	YER 475 – USD 0.90
Diesel	YER 475 – USD 0.90
Paraffin	N/A
Jet A-1	YER 632.4 USD 1.2
Fuel Prices in South of Yemen per Litre as of: 19 NOV 23 *(local currency and* *USD - $*)
Petrol	YER 1,250 – USD 0.845
Diesel	YER 1,500 – USD 1.015
Paraffin	N/A
Jet A-1	YER 1921.4 – USD 1.30

Seasonal Variations

Seasonal Variations
Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?)	Yes
Is there a rationing system?	No
Is fuel to lower income / vulnerable groups subsidized?	No
Can the local industry expand fuel supply to meet humanitarian needs?	Yes
Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs?	Yes

Fuel Transportation

Fuel in Yemen is distributed only through YPC, both in North and South, to the local market using its own bowsers and private bowsers.
In North of Yemen, once the fuel is imported through ports of Hodeida or Ras Issa, YPC is possessing all the fuel to its tanks in Hodeida Port and Ras Issa Port. Then fuel transported from Hodeida port to the strategic storage plants of YPC in North of Yemen. Those plants located in Hodeida and Sana’a. From Hodeida and Sana’a strategic storage plants, YPC putting a plan for distribution to all northern fuel stations on daily basis.
In South of Yemen, once the fuel is imported through ports of Aden, Mukalla and Nushton, YPC is possessing all the fuel to its tanks in ports and then transports it to its strategic storage plants in South of Yemen. Those strategic plants located in Aden, Marib, Shabwah, Mukalla, Sayoun, Al-Mahrah and Taiz. From those strategic plants fuel distributed to the locations within its geographical coverages.
Transportation of fuel faced with many bottlenecks as some of roads are closed due to political constraints and lack of safe roads which either damaged or closed and lack of rehabilitation of roads.
The current capacity can cover the local demand as well as a portion of the demand of the humanitarian community. However, some humanitarian communities are reaching WFP for provision of fuel which are supported through contracting with private companies for importing and distributing fuel.

Standards, Quality and Testing

Fuel specifications are launched in tenders through YPC, below are the specification used by YPC in North of Yemen:

image-20240221143450-1

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Industry Control Measures
Do tanks have adequate protection against water mixing with the fuel?	Yes
Are there filters in the system which monitor where fuel is loaded into aircraft?	Yes
Is there adequate epoxy coating of tanks on trucks?	Yes
Is there a presence of suitable firefighting equipment?	Yes

Standards Authority
Is there a national or regional standards authority?	Yes
If yes, please identify the appropriate national and/or regional authority.	National: Yemen Standardization Metrology and Quality Control Organization Regional:
If yes, are the standards adequate/properly enforced?	Yes

Standards Authority

Is there a national or regional standards authority?

Yes

If yes, please identify the appropriate national and/or regional authority.

National: Yemen Standardization Metrology and Quality Control Organization

Regional:

If yes, are the standards adequate/properly enforced?

Yes

Testing Laboratories
Are there national testing laboratories?	Yes

Fuel Quality Testing Laboratory
Company	Yemen Petroleum Company in North of Yemen
Name
Address	60 Street, Sana’a, Yemen
Telephone and Fax	Telephone: +967 1 444046 – 444047 Fax: +967 1 447691
Contact
Standards Used	ASTM

Fuel Quality Testing Laboratory
Company	Aden Refinery Company
Name
Address	Little Aden (115), Aden Republic Of Yemen, B.O 3003
Telephone and Fax	Telephone: +967 2 376 234 Fax: +967 02 376600/1
Contact	ENG. AHMED MUSAED SAEED, ED
Standards Used	ASTM and IP

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.