Economy

The Oil Derivatives Crisis in Yemen’s Blessed Land

The people of Yemen are stricken by political, economic, and security crises and other crises as a result of the non-application of Islam and its reference in solving problems, while the rulers and politicians of Yemen fetch solutions that are imported and imposed by the West, which is only interested in achieving its interests in light of international conflict on Yemen and its bounties.

Yemen is now suffering from oil derivatives crises, where the government plans to stop its subsidiaries for these derivatives. The government is creating these derivatives crises to tame the people to accept the dose imposed by the World Bank and its funds through its filthy reform. However some of the hired pens in the media published that President Hadi has approved the rise in the prices of derivatives, so as to “test the waters” on the street and in order to prepare it to accept this. President Hadi denies the validity of the news with the knowledge that it is he who authorizes publishing such news, otherwise the journalists and media would be penalized severely, especially in light of the difficult conditions experienced by the country.

We will explain briefly the main reasons for the crisis of oil derivatives in Yemen, which cannot be solved radically except by Islam under the state that takes care of the people, and not a state of tax collection that does not value human beings, the way Almighty Creator does.

The most important of these reasons are:

1. The International conflict, particularly the Anglo-American for the resources of Yemen, of which the most important is oil and gas. The tools of the conflict are the local politicians and influential in the country. Some politicians expressed that the conflict is a struggle for oil, including Salim Salih Muhammad, a former member of the presidential council in Yemen in an interview in the London based The Middle East Newspaper in Issue Number 12820.

2. That the capitalist system does not consider wealth as a public property, but considers it as state property and therefore people are considered as customers and not partners in wealth. It adopts the buying and selling of derivatives instead of equitable distribution or that they are sold for the cost price only as Allah has commanded because it is public property. The Prophet (saw) said:

«الناس شركاء في ثلاث الماء والكلأ والنار … »

“People are partners in three water, pasture, and fire …”

3. The regime adopted the international price of petroleum products in dollars instead of the actual cost in local currency and sells it at cost price in the local market; and not according to international prices, because oil and its refining is of Yemen and in Yemen.

4. The regime added a car tax system per gallons of gasoline, this has increased the costs of transportation by tankers belonging to influential controlling derivatives, which are added to each liter, and this is causing the soaring prices for the people.

5. Lack of sufficient refineries to cover the domestic market; Eden Refinery was built by Britain in 1954, and is now dilapidated, previously it refined 180,000 barrels and now it refines only 80,000 barrels, and the project maintenance is turned off many years ago, who is responsible for this?

6. Ma’rib Refinery was set up by the American company Hunt to cover their own needs, it refined only 10,000 barrels and now it refines 7,500 barrels only. The expansion project has been stalled for many years also, who is responsible for this?

7. The failure to establish new refineries. And the failure of the projects: Ras Issa Refinery, and Hadramout Refinery.

8. Aden and Ma’rib Refineries cover only 60% of the market, and the rest is imported from abroad. It is costing millions of dollars that go outside, causing the exit of hard currency from the country, and contributes to the deterioration of the economy. This amount of imports could not be covered by the ruling regime, although they are amounts received from the sales to the people, where did the funds paid by the people go?

9. The absence of a correct distribution plan, and the manipulation by the owners of distribution stations of the derivatives in addition to the complicity of the ruling regime, even though it can see the smuggling and selling on the black market in the center of major cities and perhaps even in the capital!

10. The smuggling of petroleum products out of the country. A report of the House of Representatives stated, “The Mocha provides a share of diesel equivalent to five provinces, although there are no factories in the port of Mocha,” Mocha is a smuggling port with the knowledge of all sides!

11. The use of oil companies operating in the exploration and production of millions of liters of diesel, although they are able to use gas as an alternative fuel, for example, sector 14 (the company, Canadian Nexen) in Maseelah consumes 355 million dollars of diesel, and sector 10 (the company TOTAL) burn gas to air. If the work of the project in sectors 10 to 14 uses gas, the project will cost 50 million dollars, and will be providing 305 million dollars, while diesel will be provided to people!

12. The lack of respect for a state that fails to prevent the recurrence of attacks on oil pipelines and its tankers by some influential individuals, whether they are chieftains or others, the state is holds talks with them and pays them the money, which encourages people to carry out such acts .

13. The state’s quest to privatize the refineries and those derivatives to evade responsibility which allows the conflict to exist between the powerful who obey the orders of those countries fighting for Yemen and its wealth .

These are the main reasons for the crisis of oil derivatives, it will not be solved correctly or distributed equitably for each member of society to acquire, except by the Islamic system, which defined the types of properties and how can possession and distribution takes place in order to achieve the welfare of the society and every individual of its members. This will not be applied properly except by the second Rightly Guided Khilafah, which we invite you to work for its establishment. O people of Yemen, as Hizb ut Tahrir has adopted a complete project, within it are solutions for all the economic problems; which are in its books like The Economic System in Islam, A Draft Constitution, and others. So work with Hizb ut Tahrir to achieve this great obligation, so that you exit this miserable life and its bitterness, even though you have a wealthy country; enough is the example of the gas reserves in Yemen which is estimated at 18 trillion cubic feet!

وَمَنْ أَعْرَضَ عَن ذِكْرِي فَإِنَّ لَهُ مَعِيشَةً ضَنكًا

“As for the one who disregards My message, he will have a miserable life”

(Ta-Ha: 124)

Media Office of Hizb ut Tahrir in Wilayah Yemen

Wednesday, 15th Rajab 1435 AH

14/05/2014 CE

No: HTY-173