Ethiopian Ministry Reports Reduction in Fuel Subsidy

The Ethiopian government has announced a substantial reduction in the financial pressure on the country’s Fuel Price Stabilization Fund. This decrease is attributed to the gradual elimination of fuel subsidy in Ethiopia.

Ministry of Transport and Logistics announced yesterday that the government had given 12.57 billion birr petrol subsidy for public vehicles in the 2016 (Ethiopian Calendar) fiscal year for nine months.

241 thousand 81 vehicles were registered to get petrol subsidy at the start of the fuel subsidy. According to an audit, the number of vehicles registered to be actual beneficiaries of subsidy in the subsidy application system is 141 thousand 182. Out of 141 thousand 182 vehicles, 102 thousand 836 vehicles got subsidy in the nine months of the fiscal year.

Subsidy cuts have led to reduced pressure on oil price stabilization fund. The Fund, currently at 89 billion birr, represents a significant decline from the burden of 124 billion birr reported in March 2022. The Fuel Price Stabilization Fund, established two decades ago, plays a crucial role in mitigating the impact of global market fluctuations on domestic fuel prices.

Meanwhile, the government last night announced to maintain the current pricing for fuel products, with the exception of Gasoline. Gasoline price rose from 77.65 birr to 78.67 birr per liter, marking the first price adjustment for the fuel since September 2023. Read More..

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