A demonstrator blocks a street with burning tyres during a protest against fuel price hikes in Sanaa July 30.

SANAA — One woman was killed in protests that erupted in Sanaa on Wednesday after the Yemeni government announced a rise in fuel prices.

Witnesses and a medical source told Reuters the protester was killed as the army fired into the air in an attempt to break up a demonstration near the presidential palace. A security source later confirmed the death to the state news agency and said another protester was injured.

The government increased fuel prices after spending about $3 billion on energy subsidies last year, nearly a third of state revenue. Yemen has been trying for over a year to secure a loan of at least $560 million from the International Monetary Fund (IMF) but the fund is pressing for subsidies to be slashed.

Yemen’s finance minister told Reuters in May that the Fund’s board was expected to finalize the deal this month.

However, a similar attempt to raise fuel prices by the government in 2005 led to violent protests in which 20 people were killed and more than 300 wounded. The measure was subsequently canceled.

Along with pressure from the IMF, the reform has also become more urgent in recent months because frequent militant ­­attacks on oil pipelines have badly hurt Yemen’s export earnings.

Sanaa earned just $671 million from exporting crude oil in January-May, down nearly 40 percent from a year earlier.

This has also led to a serious fuel shortage as attacks deprive the state of revenue to buy fuel products, angering the public. 

According to an official document circulated to petrol stations by the oil ministry and seen by Reuters, the government raised official prices of petrol to 200 Yemeni riyals ($0.93) per liter and diesel to 195 riyals.

Yemen’s president took other measures regarding public sector spending this month, including a feasibility review of state-owned companies and a ban on all but economy class travel for ministers.