The Ethiopian government on Wednesday announced reinstating its pre-war white diesel supply which immediately comes into effect.
It said the move is part of its commitment to easing mounting economic pressure following weeks of disruption triggered by the escalating conflict in the Middle East.
Minister of Finance Ahmed Shide said the decision comes after a period of acute strain on the country’s fuel supply chain, despite what he described as “growing economic resilience.”
“We have reached a stage where the economy has become resilient, allowing it to sustain rapid growth by withstanding various pressures,” he said, attributing this to “macroeconomic reforms and improved coordination” across sectors.
Notably, Ahmed did not explain how fuel imports resumed despite the continued closure of the Strait of Hormuz.
However, the announcement comes amid visible signs of prolonged strain across the country. Long lines of trucks and heavy-duty vehicles stretching for kilometers have become increasingly common in several areas.
The finance minister highlighted that the government has been importing fuel at higher prices through special procurement arrangements to cushion the domestic economy from external shocks.
Announcing that the daily diesel supply will now be restored to the previous about 9 million liters of daily supply, Shide said that shipments from the neighboring Djibouti began on Wednesday, with distribution to regions to start on Thursday.
He also confirmed that supplies of gasoline and jet fuel are being maintained at their previous levels.
According to Prime Minister Abiy Ahmed, the current global fuel crisis has forced his government to spend 20 billion birr (about 128 million U.S. dollars) each month on subsidies to ease pressure on the country’s economy and general public.
MG/as/APA