Ethiopia Restores Diesel Supply to Pre-War Levels Amid Rising Subsidy Costs

​The Ethiopian government has officially moved to restore diesel fuel supplies to their original levels, ending a period of strategic rationing triggered by instability in the Middle East. Minister of Finance, Ahmed Shide, announced that the daily supply of diesel will double immediately to meet the growing demands of the nation’s transport and industrial sectors.

​According to the Ministry, the daily distribution of diesel had been capped at 4.5 million liters as a precautionary measure during the height of the Middle Eastern conflict. With the new directive, this volume is set to return to the pre-war benchmark of 9 million liters per day, effectively stabilizing the energy market and easing the long queues seen at service stations across the country.

​To facilitate this surge in supply and protect consumers from global price volatility, the government has committed an additional 20 billion Birr in monthly fuel subsidies. This massive financial injection brings Ethiopia’s total annual fuel subsidy expenditure to over 300 billion Birr, highlighting the administration’s effort to curb inflation and maintain affordable transport costs for the public.

​Logistics operations are already underway to ensure the fuel reaches the market without delay. Minister Shide confirmed that diesel shipments have commenced their journey from the Port of Djibouti to the capital, Addis Ababa. Furthermore, the national distribution network is prepared to begin dispatching the increased volumes to various regional states starting tomorrow.

​While diesel saw temporary restrictions, the Minister reassured the public that other essential fuels remained unaffected. Supply chains for gasoline (benzene) and Jet A-1 fuel have continued at their standard capacities throughout the period, ensuring that private vehicle transit and international aviation operations faced no disruptions.

​The restoration of full diesel supplies is expected to provide a significant boost to the national economy. By easing energy constraints, the government aims to revitalize the production and logistics sectors, which are heavily dependent on diesel for heavy-duty machinery and long-haul freight transport, ultimately stimulating national productivity.

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