The government of Ethiopia has raised alarm over skyrocketing fuel prices caused by the war in the Middle East and urged citizens and institutions to avoid unnecessary consumption.
Briefing journalists on Wednesday, Ahmed Shide, minister of finance, described the surge in fuel prices as “frightening.”
He said the Ethiopian government is taking remedial measures to resolve the fuel crisis through increased subsidies and crackdown illegal trading.
He said the government is also making additional fuel purchases to prevent a supply shortage caused by the closure of the Strait of Hormuz following the Middle East war.
According to the minister, the Ethiopian government has also begun a nationwide crackdown on illegal fuel trading wherein petroleum products are sold outside the official supply chain.
The minister said “strengthened enforcement measures” are being taken against those individuals and businesses who sell fuel above the officially set price or outside authorised distribution channels.
The crackdown follows a fuel price adjustment announced by the government on Tuesday. The minister noted that the revised fuel prices are highly subsidised and significantly low compared to fuel prices in the international market
He added that the government is working to secure stable fuel supplies amid uncertainty in global energy markets, including risks linked to geopolitical tensions in the Middle East.
Ethiopia relies entirely on imported petroleum products, making fuel availability and pricing highly sensitive to global market fluctuations.
MG/as/APA