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Ethiopia’s Ministry of Trade and Regional Integration has announced a significant adjustment to the price of gas in the country. Starting from September 30, 2023, the price of a liter of gas will be set at 77.79 Ethiopian Birr.
A report by DW Amharic, published on Sunday, reveals that the price increase is over fivefold. A liter of gas (commonly referred to as benzine in Ethiopia) used to sell for 15.76 Ethiopian Birr.
White diesel has surged to 79.75 Ethiopian Birr per liter, while kerosene is now priced at 76.75 Birr.
The Ethiopian government had been subsidizing gas prices for over a year, and it remains unclear why it decided to end the subsidy when the cost of living in the country has become unbearable for the majority of Ethiopians.
Combined with the existing price inflation of other goods, the increase in gas prices is expected to place a heavy burden on the Ethiopian economy.
DW Amharic cited Alemayehu Kebede, an economist, who stated that the gas price hike will have a significant impact on both demand and supply within the country.
Fethawork Wondewossen, another Ethiopian economist, believes that increasing gas prices while the government claims to be working to reduce inflation in other goods is inconceivable.
The source also spoke to individuals in the capital involved in the transportation sector, who expressed concerns that the price hike will negatively affect both them and their clients.
The Ethiopian Statistics Service announced this week that the inflation rate for the month of August across the country reached 28.2 percent.
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