ADDIS ABABA – Ministry of Trade and Regional Integration has increased retail prices of petroleum products substantially after four months.
In a statement Saturday, the ministry said the newly adjusted prices become effective as of Sunday.
Accordingly, a liter of benzene increased by 16% (a little over 5 Birr) to 36.87 Birr. Authorities also set the retail prices of Kerosine and diesel at the same price of 35.43 Birr.
The rising global oil price is behind the decision to institute the latest price hikes, according to trade officials.
The government, considering the society’s current living conditions, chose not to make the fuel price adjustments for four months, said the ministry.
However, the decision has created a monthly 10-Billion-Ethiopian Birr deficit which otherwise should have been transferred to the consumer, resulting in extreme pressure on the government, said the Ministry in the statement.
It also gave a stern warning to illegal bodies who use the price hikes to create man-made shortages as well as hike prices on essential commodities.