Addis Ababa, Ethiopia (07 July 2022)
As a result of the government’s decision to eliminate over five fuel subsidies, gasoline prices in Ethiopia have risen to ETB 47.83 per liter today, up from ETB 36.87 in May, representing a 29.7 % increase. The price of diesel (Nafta) has reached ETB 49.02, a 38.35% increase from ETB35.43 in just two months.
The Ethiopian Broadcasting Corporation announced the new increase in prices for fuel to be effective from July 08 to August 08 as listed by the Ethiopia Ministry of Trade and Regional Integration (MoTRI). Other than benzene and diesel oils were kerosene (ETB49.02), heavy-duty diesel (ETB52.37), light-duty diesel (ETB53.10), and airplane fuel (ETB98).
In early May, the Ministry imposed a 16 percent increase in fuel prices in order to eliminate the monthly 10-billion-Ethiopian Birr deficit caused by the government’s price hike freeze. The main culprit back then, as well as now, is the Russo-Ukrainian War and the subsequent global oil shortage.
An article by Bloomberg highlighted the ever-worsening situation at pump stations in the country, with motorists in the capital Addis Ababa waiting as long as eight hours to refill. This had a ripple effect on the transportation sector, resulting in regular commuters waiting for hours before they could get rides.
For the same reason (the war), oil price increases are spreading to more African countries. According to Tadesse Hailemariam, chief executive officer of the Ethiopian Petroleum Supply Enterprise, the crisis in the Horn of Africa country- which is also facing a foreign currency shortage- has been exacerbated by marketers hoarding the product in anticipation of higher prices.
The opinions expresses here in the post "Gas Prices Soar Again in Ethiopia Amidst Fuel Shortage Crisis" are those of the individua's contributor(s) and do not necessarily reflect the views of Business Info Ethiopia , BIE Intelligence PLC, its publisher, editor, or any of its other contributors.