Ethiopian drivers face exorbitant fuel prices amid supply disruptions and illegal trade
via The Reporter Ethiopia3 min read
Drivers in Ethiopia are encountering significantly inflated fuel prices in a parallel market, a situation exacerbated by global supply disruptions. An anonymous driver reported paying over 500 Birr per liter for diesel in the Gambella region due to limited access at legal stations. In Addis Ababa, fuel shortages lead to long queues and complaints of unequal access, with some drivers paying 300 to 400 Birr per liter for priority service. This has fueled the expansion of illegal resale networks, where fuel is diverted from legal stations and resold at inflated prices. Lemma Bedane, a driver, purchased benzene for 350 Birr a liter from individuals selling from private residences. The financial impact on transport operators is substantial, with the cost of filling a vehicle more than doubling, reaching up to 16,000 Birr compared to the official rate of 7,000 Birr. These prices sharply contradict the government's amended rate of 163 Birr per liter for diesel. A member of the Ethiopian Petroleum Dealers’ Association attributed the situation to broader supply chain challenges and high demand from large-scale development projects, which often purchase fuel at inflated prices to avoid costly delays. He called for stronger government oversight and more efficient fuel distribution systems, suggesting that expanding private sector participation could help stabilize supply. He warned that strict price controls alone would not resolve the issue if supply remains constrained, potentially wo
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
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