The Ethiopian Ministry of Trade and Regional Integration announced yesterday an increase in the retail price of fuel, bringing the cost of gasoline to 112.67 Ethiopian Birr per liter. This revision, implemented on the evening of Sunday, March 23, 2025, marks the third price hike for fuel products this year.

As part of a process that began three years ago, the Ethiopian government removed private and institutional vehicles from the fuel subsidy system within one year. The subsidy provided to public transport service providers is also scheduled to be fully withdrawn within five years.

In July of last year, the Ethiopian government initiated a macroeconomic reform program with the support of the International Monetary Fund, resulting in a substantial rise in fuel prices. This shift was influenced by changes in the country’s foreign exchange system, which transitioned to a market-oriented model as part of the reforms. Consequently, the cost of fuel—purchased in foreign currency—has seen significant increases.

In September, the Ministry of Trade and Regional Integration announced that fuel price increases attributed to foreign exchange rates would not be imposed all at once. Instead, the adjustments would be phased in over a year through quarterly price hikes.

The first amendment, introduced in September, saw an increase of 8.54 ETB for gasoline and 6.54 ETB for white diesel. The second price hike occurred in December, pushing the price of gasoline up by 10 ETB, bringing it above 100 ETB for the first time. Airplane fuel prices also raised during this period, rising from 77.76 ETB to 109.56 ETB per liter. Additionally, white diesel and kerosene experienced an 8 ETB increase.

The latest price revision announced yesterday has implemented an increase of 11.20 ETB for gasoline, raising its cost to 112.67 ETB per liter—the highest jump this year. White diesel and kerosene prices rose by 8.95 ETB, bringing it to 107.93 ETB per liter. Airplane fuel prices increased by 3.64 ETB, reaching 113.20 ETB, while light black diesel climbed to 109.22 ETB, and heavy black diesel rose to 106.75 ETB per liter.

Despite these price hikes, reports indicate a severe fuel shortage in various regions, including Tigray. The scarcity has forced car owners to purchase fuel on the black market at significantly higher prices.