The Ethiopian Ministry of Trade and Regional Integration has announced a critical disruption in the national fuel supply following the escalation of conflict in the Middle East. According to an official statement released on April 2, 2026, the closure of the strategic Strait of Hormuz has paralyzed global energy routes, leading to the stranding of three Ethiopian cargo ships carrying 180,000 metric tons of fuel in the Persian Gulf. The trapped shipments include 120,000 metric tons of white diesel and 60,000 metric tons of jet fuel, essential for the country’s transport and aviation sectors.
The logistical bottleneck has forced the Ethiopian government to seek alternative energy sources in a volatile market. With primary producers like Saudi Arabia and Kuwait reportedly cutting daily global supplies by 140 million barrels due to the maritime blockade, Ethiopia has been compelled to purchase fuel from the “spot market” at significantly higher premiums. For instance, the emergency premium for jet fuel has surged to $86.33 per barrel, a massive increase compared to the standard contract rate of $9.25. This shift has placed an immense strain on the national treasury, with the government’s fuel subsidy burden now exceeding 272 billion Birr.
In response to these mounting economic pressures, the Ministry has implemented a mandatory price adjustment to ensure the continuity of essential services. Under the new tariff, the retail price of gasoline has risen to 142.21 Birr per liter, while white diesel is now set at 163.09 Birr. Despite these hikes, officials clarified that the state continues to provide substantial subsidies—approximately 71 Birr for every liter of diesel—to shield the public from the full impact of global market volatility. Without this intervention, the Ministry stated that diesel prices would have surpassed 234 Birr per liter.
To manage the current scarcity, the government has established a specialized task force to oversee the distribution of remaining reserves. Priority is being granted to critical sectors, including public transportation, export-oriented industries, mechanized farming, and security institutions. Essential services such as health facilities, telecommunications, and water and power utilities are also at the top of the rationing hierarchy. The Ministry emphasized that while gasoline supplies remain relatively stable, the distribution of diesel and other fuels will be strictly monitored until the international maritime corridor reopens.
The government concluded its briefing by calling for national solidarity and consumption consciousness as the country navigates this geopolitical emergency. Officials noted that even with the recent price adjustments, Ethiopia’s fuel costs remain lower than those in neighboring East African nations like Kenya and Djibouti when calculated in USD. However, the duration of the crisis remains uncertain, and the Ministry urges the public to cooperate with the new distribution guidelines to help the nation transition through this challenging economic period.