Minister of Trade and Regional Integration (MoTRI) , Kassahun Gofe announced that over 180,000 metric tons of fuel, which Ethiopia intended to import, has failed to reach the country due to the war and instability in the Middle East.
The Minister disclosed this during a briefing regarding new government decisions aimed at mitigating the impact of the ongoing international crisis.
According to Kassahun, Ethiopia’s long-term fuel procurement contracts with Middle Eastern suppliers have been disrupted by the conflict.
As suppliers officially notified the government of their inability to deliver the product, the 180,000 metric tons of fuel currently in the procurement process could not enter the country.
This disruption has placed significant pressure on the domestic fuel supply, specifically causing the daily supply of diesel to drop from 9.2 million liters to 4.5 million liters.
Regarding the impact of the war on global fuel prices, the Minister explained that the price of a barrel of diesel has skyrocketed from $80 before the war to $230 today, while gasoline surged from $70 to $150. Despite these prices tripling on the global market, he noted that the government continues to provide substantial subsidies to protect citizens’ livelihoods.
Currently, the government is subsidizing 95 Birr per liter for diesel and 42 Birr per liter for gasoline. To date, the government has spent approximately 262 billion Birr on fuel subsidies, with a monthly allocation ranging from 15 to 20 billion Birr.
To manage the current supply shortage fairly, a priority allocation system has been implemented effective on today March 31,2026.
Under this directive, priority for fuel supply will be given to fuel-transporting tankers, export-oriented organizations, special national projects, vehicles transporting basic consumer goods, tractors for modernized agriculture, and public transport services.
In terms of enforcement and public cooperation, the Minister revealed that 658 individuals, including officials, have been detained for illegal activities in the fuel trade, and over 720,000 liters of fuel have been seized and confiscated.
