The Ethiopian Ministry of Trade and Regional Integration said fuel prices would have climbed as high as 234 Birr per liter without government subsidies.
The ministry reported that subsidies have now exceeded 272 billion Birr, cushioning domestic consumers from sharper increases. According to official figures, diesel prices would have reached 234.17 Birr per liter and benzene 174.40 Birr without state support.
New retail prices are set at 142.21 Birr for benzene, 151.39 Birr for kerosene, 163.09 Birr for gas oil (white diesel), 163.98 Birr for light black diesel, 160.68 Birr for heavy black diesel, and 150.48 Birr for jet fuel. The price for gas oil (white diesel) for direct consumers has been set at 210 Birr. The government said it continues to subsidize about 71 Birr per liter of diesel and 32 Birr for benzene.
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Under an agreement with Kuwait, Ethiopia sources 60 percent of its gas oil and all of its jet fuel, while the remainder along with benzene and black diesel is procured from international traders such as Vitol on on 360-day credit terms. While the Kuwait contract carries a fixed logistics premium of USD9.25 per barrel, emergency procurement premiums have surged to USD 92.88 per barrel for gas oil and USD86.33 per barrel for jet fuel, according to the ministry.
The ministry noted that three vessels carrying 120,000 metric tons of gas oil and 60,000 metric tons of jet fuel remain stranded in the Arabian Gulf.
Amid the tighter supply, authorities have introduced a priority-based fuel distribution system. According to the priority sequence, those receiving priority service include fuel tankers, import-export vehicles, essential commodity and export-oriented manufacturing industries, key public and private development projects, mechanized farms, and security and safety institutions. Furthermore, priority is extended to public transport vehicles, health services, telecom tower operations, election activities, emergency water and electricity works, media and humanitarian services, as well as universities with high student populations.
