The federal government has introduced sweeping fuel prioritization measures and intensified a crackdown on illegal trading after a delivery of more than 180,000 metric tons of fuel failed to arrive, heightening concerns surrounding supply disruptions linked to conflict in the Middle East.
The shortfall, affecting shipments already in the procurement pipeline, comes as global fuel markets tighten and long-standing supply agreements with Middle Eastern exporters falter, officials said.
Kassahun Gofe, minister of Trade and Regional Integration, said the federal government had adopted a series of decisions to manage the crisis, including the creation of a centralized unit to monitor fuel supply, oversee distribution, and designate priority sectors.
The unit will track supply, distribution and consumption, while advising on further policy actions, according to the Minister.
From The Reporter Magazine
“The war and instability in the Middle East have already affected Ethiopia’s fuel trade and supply,” Kassahun said during a briefing today.
Global fuel prices have surged sharply since the outbreak of the conflict. The disruptions have forced Ethiopia to turn to alternative suppliers at significantly higher costs, in some cases paying up to three times previous prices.
The price of diesel has climbed to about USD 230 a barrel from USD 80 before the war, while gasoline has risen to USD 150 from USD 70, according to the Minister.
From The Reporter Magazine
Meanwhile, daily diesel availability has dropped by more than half, from 9.2 million liters to 4.5 million liters, intensifying pressure on transportation and industry.
The government continues to spend between 15 and 20 billion Birr a month on fuel subsidies, according to the Trade Minister.
Under the new measures, fuel will be allocated on a priority basis to key sectors, including transport, major producers and exporters, strategic public and private projects, agriculture, and vehicles carrying essential goods.
Officials said they have also stepped up enforcement against illegal fuel trading. More than 650 individuals, including public employees, have so far been detained in connection with the underground fuel trade, while over 720,000 liters of fuel have been seized, according to the Minister.
Kassahun urged the public to conserve fuel, reduce nonessential travel, and make greater use of public transportation, while encouraging the adoption of alternative energy sources. He also called on citizens to report illegal activity in the fuel market.
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