Ethiopian government raises fuel prices by up to 11 birr per liter to mitigate economic strains and reduce subsidy expenditures, while grappling with widespread fuel shortages and a burgeoning black market.
The Ethiopian government has implemented a significant increase in fuel prices, elevating the retail price of gasoil to 112.67 birr per liter, an 11% hike.
Effective from March 23, 2025, in Addis Ababa, diesel and kerosene prices have also risen to 107.93 birr per liter, marking a 9% increase.
The Ministry of Trade and Regional Integration reports the price change to be a standard element of their quarterly fuel price adjustments.
The new fuel price rise took place within just three months following the earlier adjustment.
Prime Minister Abiy Ahmed disclosed to parliament that governmental funds would be used to provide fuel price subsidies while battling inflation increases.
The prime minister noted that the government uses subsidies to pay 28 birr per liter to the global market price of 129 birr per liter before domestic sales reach 101 birr per liter.
Prime Minister Abiy Ahmed disclosed to parliament that the previous fuel subsidy expenditures reached 72 billion birr.
The government maintains its support of essential product subsidies to ease financial pressures on lower-income groups he explained.
A fuel crisis has created severe shortages throughout different parts of Ethiopia as prices keep increasing.
The supply of gasoline has run dry for Bajaj drivers across the Afar region for eleven months which drives them toward black market fuel at 300 birr per liter.
The regions of Adama City together with Oromia and Amhara experience an acute crisis because black-market fuel prices are reaching 225 birr per liter.
The country experiences multifaceted difficulties between economic demands and fuel subsidy control while achieving fair distribution during persistent fuel shortages and black-market proliferation.
