Petroleum subsidies in Yemen are being reduced to help the economy grow and develop sustainably. By reforming these subsidies, Yemen could see an increase in economic growth of up to 0.8% each year. However, it's crucial to design the reform carefully to avoid making the poor even poorer. One effective strategy is to combine subsidy cuts with direct payments to the poorest households and increased public investments in key sectors like utilities, transport, trade, and construction. This could help integrate different parts of the economy and create opportunities for job growth in the future.