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

Yemen's construction sector faces severe disruption as fuel costs have surged dramatically in recent months, creating a ripple effect across the entire industry. Diesel prices have nearly doubled, climbing from 25,000 Yemeni riyals for 20 litres in January to 45,000 riyals today, according to reports from the region. This escalation has driven up costs for all transportation-dependent goods and services, with building materials experiencing particularly sharp increases.

Construction labourers have borne the brunt of the economic downturn. Workers who previously secured employment for roughly two weeks monthly now find themselves with extended periods without work. Building material prices have risen substantially—sand truck loads increased from 130,000 to 190,000 riyals, while window glass prices climbed from 90,000 to 130,000 riyals per metre. These cost increases have forced homeowners to pause or abandon construction plans, leaving contractors unable to proceed with projects.

The underlying cause of the fuel price surge stems from multiple factors affecting regional supply chains. According to a Yemen Petroleum Company official, the increases reflect worsening supply shortages, elevated global fuel prices driven by regional tensions, closure of the Strait of Hormuz, and heightened transportation and marine insurance expenses. These conditions have created a difficult environment for workers dependent on daily wages, with some accepting reduced pay rates simply to secure any employment available.