The Ethiopian Ministry of Trade and Regional Integration has announced a significant surge in fuel procurement costs, highlighting the economic strain caused by global supply chain volatility. According to the latest data, the cost of refined white diesel has reached $230 per barrel, while refined gasoline has climbed to $150 per barrel.
Government officials indicated that Ethiopia is currently forced to purchase fuel through the 'spot market,' where prices are significantly higher than standard contractual rates. This reliance on the spot market is a direct consequence of supply shortages and logistical hurdles.
The primary driver of these disruptions is the ongoing instability in the Middle East. Ethiopia’s fuel imports are heavily dependent on shipping routes passing through the Strait of Hormuz. As regional tensions escalate, the flow of tankers through this critical maritime chokepoint has been compromised, leading to increased scarcity and higher premiums for available supplies.
This development poses a significant challenge for the Ethiopian economy, which relies on imported petroleum products to power its transport, industrial, and agricultural sectors. The increased cost of fuel is expected to exert further pressure on domestic inflation and foreign exchange reserves.
The Ministry continues to monitor the situation closely as it seeks alternative supply strategies to mitigate the impact of these global market fluctuations on the national economy.
Source: Telegram / tikvahethiopia