Ethiopia is ramping up efforts to mitigate a fuel crisis exacerbated by recent geopolitical tensions in the Middle East, Finance Minister Ahmed Shide announced this week. The government has increased subsidies to stabilize domestic fuel prices and ensure affordability for residents, while securing additional imports to offset supply disruptions caused by the closure of the Strait of Hormuz.
"We are prioritizing fuel accessibility for households and critical industries," Shide stated, emphasizing that Ethiopia’s current fuel prices remain below international market rates due to state support. The measures follow a March 10 price adjustment, which authorities say maintains subsidies to cushion consumers from global volatility.
To combat hoarding and black-market activity, Ethiopian officials have launched a nationwide crackdown on illegal fuel trading. The initiative targets unauthorized sellers diverting petroleum products from official supply chains or charging above regulated prices.
As a nation entirely dependent on imported petroleum, Ethiopia’s economy remains vulnerable to external shocks. Analysts warn that prolonged Middle East instability could further strain supply chains, though Shide expressed confidence in the government’s contingency plans.
