Yemen, trying to reduce subsidies, increased fuel prices up to 14.3 percent on Sunday, pumping station owners said.

The price of gasoline was increased to 65 rials (31 U.S. cents) per litre from 60 rials, while diesel was raised to 39 rials from 35 rials and kerosene was raised to 40 rials from 35 rials, they told Reuters.

An official at state-run Yemen Petroleum, who asked not to be named, confirmed the increase and said it had gone into effect at 3 p.m. (1200 GMT) on Sunday.

Yemen, a poor Arab state facing growing instability, has been implementing economic reforms backed by the World Bank and the International Monetary Fund.

There were riots over food prices in Yemen in 2007. In 2005, the goverment reversed fuel price increases after 22 people were killed and more than 300 wounded in riots sparked by the rises in prices for gasoline, diesel and kerosene.

Yemen, a small oil producer with declining resources, has said fuel price rises are part of the reforms launched in 1995 to prevent economic collapse.

Of Yemen’s population of 23 million, more than 40 percent live on less than $2 a day, and the country’s foreign minister said on Tuesday that unemployment stood at 30 percent.