Fuel crisis in Addis Ababa turns commutes into ordeals, exposing human cost of global crisis
via The Reporter Ethiopia11 min read
Addis Ababa is experiencing a severe fuel crisis, transforming daily commutes into significant challenges for residents. At the Megenagna transport hub, a woman's struggle to afford a minibus fare highlighted the human impact of rising costs. She could only pay 40 birr for a 60 birr fare, leading to an emotional exchange that revealed the broader economic strain. Minibus drivers also face difficulties, waiting days for fuel or resorting to expensive black market purchases, which they say are compounded by allegations of fuel stations withholding supply. The crisis is linked to distant geopolitical events, such as the war in Iran and the vulnerability of the Strait of Hormuz. Fuel shortages have led to kilometer-long queues at filling stations and increased transport costs, driving up prices for basic goods. An informal fuel market has emerged, with individuals like "Doctor" reselling fuel at inflated prices. The Addis Ababa Transport Bureau has implemented a priority allocation system for public transport and formed a task force to combat hoarding. Prime Minister Abiy Ahmed acknowledged the queues but emphasized the country's continued operation despite global pressures, noting the government's 20 billion birr allocation to stabilize fuel supply. Minister of Finance Ahmed Shide confirmed the reinstatement of diesel supply to its pre-disruption level of 9 million liters per day, after a 50 percent reduction.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
Ethiopia's Ministry of Finance announced the restoration of daily diesel supply to nine million liters, following a two-month period of reduced volume due to supply disruptions caused by the US-Israeli war in Iran. Fuel trucks have begun transporting diesel from Djibouti to Addis Ababa, with more expected to reach regional towns and cities. This development is anticipated to alleviate the challenges faced by truck and public transport drivers who have experienced long queues at pumping stations. The diesel crisis had previously impacted food and commodity prices, particularly fresh produce, and led to a nearly 17 percent increase in diesel retail prices to 163.09 Bir per liter. Reports also indicated a rise in illicit fuel trade during the disruption. Talks between the US and Iran have stalled after eight weeks of fighting, raising concerns about shipping through the Strait of Hormuz.
Dashen Breweries SC has announced the appointment of Matiyas Getachew as its new Chief Executive Officer. This appointment marks a significant transition as Matiyas becomes the first Ethiopian executive to lead a major brewery in a sector traditionally headed by expatriates. Matiyas joined Dashen in 2020 as Chief Financial Officer and was named acting CEO last year after the departure of Mario Van Geldern. The company elevated him to permanent CEO due to his strong leadership and achievements as CFO during challenging macroeconomic conditions. Matiyas holds a bachelor’s degree from Addis Ababa University’s Commercial College, is a chartered certified accountant, and has a master’s degree from Heriot-Watt University. His international background includes leadership roles at SABMiller, Coca-Cola Beverages Africa, and Diageo. Industry observers note this appointment reflects a broader trend toward local leadership in multinational corporations, with other major players like Coca-Cola and Unilever also recently appointing local CEOs. An industry analyst stated that Matiyas’s appointment shows growing confidence in Ethiopia’s ability to empower homegrown executives to lead large consumer businesses. Dashen Breweries was founded in 2000 by Tiret Corporate, with Duet Group, a UK investment firm, holding a majority stake since 2012.
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