The government claims that the March petrol subsidy caused a loss of more than 2.2 billion birr

Ethiopia spends billions of dollars per month on gasoline subsidies, according to a report from the Ministry of Trade and Regional Relations. The minister’s counsel in the ministry office, Ahmed Tusa, claims that Ethiopia is heavily indebted as a result of petrol subsidies.

The government pays more for its purchases and lowers the price it charges for its sales of petroleum in compared to the marketplaces of the neighbouring nations. The expert claims that monthly losses in the billions of dollars are reported.

For instance, only the month of March saw losses of more than 2.29 billion birr reported.

Mr. Ahmed asserts that the loss has diminished as a result of the gradual rise in the gasoline subsidy. He made it clear that the intention is to narrow the price gap with adjacent countries. It will minimise the smuggling of petrol, which is bought at a high price and supplied to surrounding countries for a low price.

Ethiopia lost more than 64.5 billion Birr between January and December of 2021, and 101.3 billion in 2022. He proceeded by noting that when the subsidies started to increase recently, a loss of more than 7.6 billion birr was documented from January to March of 2023.

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