Ethiopian Informer
ADDIS ABABA (EI) — The Ethiopian government said it is currently spending 15-to-20 billion ETB on fuel subsidies every month to address fuel supply disruptions and shortage caused by the ongoing conflict in the Middle East.
Kassahun Gofe, Minister of Trade and Regional Integration, said the government has so far spent a total of 262 billion ETB on fuel subsidies so far, state news agency ENA reported.
The trade minister said more than 180,000 metric tons of fuel that was in the procurement process could not be delivered due to the conflict in the Middle East.
He said the situation has forced the Ethiopian government to purchase and supply fuel at three times the price before the conflict erupted.
According to him, before the war, the price of a barrel of white diesel was 80 USD and gasoline was 70 USD, but due to the conflict, the price of diesel has increased to 230 USD, while gasoline prices rose from 70 USD to 150 USD.
To address the broader economic impact of fuel price hike on the international market, Kassahun said the Ethiopian government is currently providing a subsidy of 95 ETB per liter on white diesel and 42 ETB on gasoline.
The minister highlighted that the government’s decision is mainly envisaged addressing the fuel supply shortage in the country, and to prevent social and economic activities from being hampered.
Meanwhile, Kassahun disclosed that the Ministry of Trade and Regional Integration has formed a special task force to monitor the country’s fuel supply and distribution, as well as to take appropriate action by identifying priority sectors.
(Photo shows vehicles lined up to refuel as long queues formed across Addis Ababa amid sharp fuel supply shortage.)
