Sanaa , Yemen ( CNN ) -- Yemeni President Abdu Rabu Mansour Hadi dismissed the government Tuesday and agreed to a 15 % cut in fuel prices , in addition to other economic reforms , seeking to end weeks of tense protests led by tens of thousands of Houthi loyalists in the capital , Sanaa . Houthis , also known as `` Ansarullah , '' have rejected the initiative . Houthi representative Mohammed Abdul-Salam announced they will continue protesting in Sanaa and its outskirts since the government did not involve them in the initiative . `` We do not agree with the initiative announced by the government committee , and we will stand with the Yemeni people in their call for their rights , '' he said . Tens of thousands of Houthi supporters have been rallying for weeks to demand that a recently approved oil subsidy reform be revoked and that the government step down before they agree to lift their tents from Sanaa and the outskirts . The President 's initiative also calls on the Houthis to withdraw fighters from Amran province and an immediate end of clashes in the northern Jawf province . Ali al-Bukaiti , A top Ansarullah leader , said that Houthi supporters , who follow the Zaidi sect of Islam , will not be tricked by the government 's light reforms and that their demands are clear . On Monday , hours after Houthi leader Abdul-Malik al-Houthi announced escalating the protests , Hadi sent Sanaa Mayor Abdul-Qadir Hilal to Saada province to give dialogue a final chance . Government committees that held talks with Houthi leaders over the previous two weeks did n't resolve the political tension . In a televised speech Sunday , al-Houthi said that his supporters would continue to protest and that at the right time , he would announce more stages of escalation . `` The final stage will be the hardest , and we will think of all ways to intensify our struggle and force the government to step down , '' he said . For years , Yemen has faced violent battles against Houthi rebels .
Houthi official : fighting will continue , government did not support Houthis in the initiative . Tens of thousands demand revocation of oil subsidy reform , call for a new election . Official : ` ` We do not agree with the initiative ... and we will agree with the Yemeni people ''