Oil adulteration causing serious problem


In a meeting with relevant stakeholders, Trade Ministry officials warned those participating in illegal mixing of diesel with kerosene they will take severe measures to combat the situation.
Adulterated diesel oil has caused lots of problems for motorists in the last several years including disabling their vehicles. According to our sources, the situation has become especially serious in Mojo and Welenchiti towns located in the Oromia Regional state, which have taken center stage for such illegal activities.
A couple of years back, the government had identified a network of illegal businesses run by people in these towns and taken action against them, but the situation seems to persist.
Ethiopia has imported close to one million metric tonnes of petroleum worth USD 1.1 billion in the second half of the last fiscal year (2012/13), which is almost 25 percent higher than the amount for the same period of the 2011/12 fiscal year.
Meanwhile, in 2012/13 fiscal year, the Ethiopian Petroleum Supplier Enterprise (EPSE), the sole entity tasked with delivering the country’s total requirement of petroleum, has also imported 126,209 metric tonnes of coal worth USD 29.5 million. 
EPSE was established by the Council of Ministers in July 2012 by amalgamating the Ethiopian Petroleum Enterprise (EPE) and the National Petroleum Depot Administration (NPDA). EPSE has 13 depots in various parts of the country and two branch offices in the neighbouring countries of Djibouti and Sudan.
Although instruction to merge the two institutions came from the Prime Minister’s Office, the idea for the merger had also been entertained by the Privatization & Public Enterprises Supervising Agency (PPESA) and other government bodies for quite some time, according to officials at PPESA and the former EPE. The merger will not bring much change to the two bodies’ activities, but will result in more coordination between them and facilitate the efficient use of resources, they claim.
Ethiopia imports upto 85 percent of its annual oil consumption from neighbouring Sudan, largely due to its geographic proximity. Ethiopia saves at least USD10 million a year in transport-related costs by using Sudanese oil sources rather than importing from markets further away, such as the Middle East. Ethiopia spends over 50 percent of its total export earnings to meet the Nation’s fuel demand.