ADDIS ABABA – The Ministry of Trade and Regional Integration announced a fuel price adjustment on Wednesday, which saw retail fuel jump by at least 20%.
This is the second fuel price hike authorities introduced since they began phasing out fuel subsidies three months ago.
“Although international oil prices showed some stability in September, the difference remains significant compared to those in our country,” the Ministry said on Wednesday evening.
The trade ministry said the fuel prices, which became effective as of Wednesday night, are set with an intention to “reflect the international fuel prices”.
Diesel car owners and drivers particularly saw a higher price jump at the gas stations.
The pump price of a liter of diesel hiked by 22.2 per cent to 59.90 Birr from 49.02 Birr as of Wednesday night.
The adjustment also saw benzene price at the pump rise from 47.83 Birr to 57.05 Birr per liter – close to 20% higher than drivers were paying earlier this week.
The retail price of Kerosene also hiked to 59.90 birr per liter at gas stations.
The fuel price adjustment is a part of the government’s plan to phase out subsidies at gas pumps by June next year, except the public transport sector.
Fuel subsidies are reviewed every three months. The government last raised retail prices of fuel by 30-40% in May 2022.
The latest fuel price increase is feared to have an inflationary pressure on a local market.
The inflation rate in Ethiopia stood at 32.5 per cent in August despite a drop for three consecutive months, as per Central Statistical Agency latest report.