The Ethiopian government has announced a series of critical decisions to stabilize the nation's fuel supply, which has been severely disrupted by the ongoing conflict in the Middle East and the escalating global crisis. Minister of Trade and Regional Integration, Kassahun Gofe (PhD), detailed how the regional instability has crippled international supply chains, causing the price of white diesel to skyrocket from $80 to $230 per barrel and gasoline to jump from $70 to $150. Dr. Kassahun revealed that long-standing supply contracts with Middle Eastern partners have been interrupted, resulting in a shortfall of over 180,000 metric tons of fuel that was already in the procurement process. Consequently, the country’s daily diesel supply has plummeted from 9.2 million liters to just 4.5 million liters.

To prevent an economic standstill, the government has been forced to source fuel from alternative markets at triple the international price. Despite these staggering costs, the state is maintaining heavy subsidies to protect citizens' livelihoods, currently covering 95 Birr per liter for diesel and 42 Birr per liter for gasoline. This support has already cost the government approximately 262 billion Birr, with an additional 15 to 20 billion Birr being allocated every month. To manage the remaining reserves fairly, a new priority distribution system effective today grants first access to fuel tankers, major exporters, critical infrastructure projects, essential goods transporters, agricultural tractors, and public mass transit vehicles.

To ensure compliance, a 24/7 central tracking unit involving federal and regional institutions has been established to monitor distribution and identify priority sectors. The Minister warned that any distribution outside of these guidelines is illegal and will be met with strict legal action. Already, enforcement operations have led to the arrest of 658 individuals, including government officials, for illegal fuel trading, with over 720,000 liters of fuel seized and returned to the state. The government is now calling on the public to navigate this crisis collectively by conserving fuel, embracing renewable energy, prioritizing public transport or walking, and reporting illegal market activities.