Ethiopia
Ethiopia - 3.1 Ethiopia Fuel
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Overview 

Ethiopia consumes daily one million litres of benzene, 6.5 million litres of diesel and two million litres of jet fuel. The annual kerosene consumption is 260,000 metric tons. The consumption of kerosene is dwindling as the public is using electric stoves instead of kerosene ones. The country has 13 fuel depots in different parts of the country that can store 360,000 cubic meters of petroleum products.    

Local supply (domestic refinery production and imports combined) does meet the needs of the country, especially for aviation and ground fuels. There are some national priorities in the availability of fuel but the local industry can expand the fuel supply to meet the needs of humanitarian organisations. It is also possible for humanitarian organizations to contract a reputable supplier/distributor directly to provide its fuel needs. 

Fuel transactions in Addis Ababa has gone digital in all the gas stations as part of a planned nationwide roll out. The gas stations started implementing mandatory fuel transactions through digital payments electronically through ethio telecom’s platform, telebirr after instructions from the Petroleum and Energy Authority. The platform will offer a seamless and secure payment system that will benefit both customers and fuel stations. This has also created some initial bottlenecks; large ques are seen at the fuel stations because vendors and public are still learning how to use this newly implemented system. https://ethiopianmonitor.com/2023/04/25/gas-stations-in-addis-start-digital-fuel-transactions-ahead-of-nationwide-rollout/ 

For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List 

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly.  

Energy Pricing 

Energy Pricing Energy pricing policy plays a crucial role in mainstreaming energy markets such that certain preferred energy forms and services could be used in lieu of other less preferred options. Energy production and utilization efficiency, energy transition, access to modern energy services, expansion of renewable energy technologies, carbon neutrality in energy utilization, competition and investment decisions in the energy sector could all be influenced through the application of appropriate pricing instruments. The most desirable pricing policy is to follow market prices whenever the conditions exist for competitive markets. However, market imperfections prevail in energy markets requiring pricing policy interventions to reflect true costs of energy services that internalize financial, economic, social and environmental costs.  

The energy pricing policy instruments allows market mechanisms to play central role if the presence of market imperfections do not obstruct the realization of certain basic energy objectives and principles. It applies basic principles of longer-term cost-effectiveness and financial viability, economic efficiency, income distribution/ social well-being, and sustainable development as main drivers for energy pricing intervention. It Introduces targeted and time-bound subsidies and pricing instruments in areas where market mechanisms fail to promote access to certain energy services for low-income groups, and when certain energy forms fail to compete until bottlenecks are removed. Provides clear signal to energy consumers and producers through pricing mechanisms. Keeps updated pricing information for biomass and other fuels (at key geographic areas). 

The Federal Democratic Republic of Ethiopia Ministry of Trade and Industry revises the price of fuel every month based on the world market. 

Source ( Ethiopia: Ministry Announces Revised Fuel Prices (2merkato.com) 

Fuel Prices per Litre as of: May 2023  

(local currency and USD - $) 

Petrol  

69.43  ETB 

1.27USD 

Diesel 

71.08 ETB 

1.28 USD 

Paraffin 

 71.08 ETB 

1.28 USD 

Jet A-1 

66.60 ETB  

1.22 USD 

Seasonal Variations  

 The seasonal variations are mostly based on the world market rates. Priorities are therefore given to key bodies like medical ambulance, military, police and firefighting equipment. Rationing is done in locations that are dependent on generators. For the UN, WFP imports bulk fuel which augments supply from the local market. WFP has also prepositioned bulk fuel for its operation in cities with limited supply, this also supports other UN Agencies and International Humanitarian Organizations. 

 

Seasonal Variations 

Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) 

Yes 

Is there a rationing system? 

No 

Is fuel to lower income / vulnerable groups subsidized? 

No 

Can the local industry expand fuel supply to meet humanitarian needs? 

Yes 

Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? 

Yes 

Fuel Transportation 

 Ethiopia being a landlocked country, its fuel and lubricants imports are through the port of Djibouti and stored in Horizon Djibouti terminal (HDT) This facility has two berths that accommodates 12 fuel tanker trucks loading bay. Road transportation is done from two (2) corridors via Galafi border mille-Awash or Dewele. The major fuel importers are Ethiopian Petroleum Supply Enterprise (EPSE) who does importation for diesel, fuel and kerosene while Ethiopian Airlines Enterprise does aviation fuel.  

Some existing bottleneck in the transportation of fuel is impacted by high port and handling charges, indirect additional transit costs, vehicle operating cost which is caused by fuel levy and in some section of the country poor rood network. Main transportation mode is railway and road. There’s a growing demand against the supply in commercial market. Long queues are regularly seen in most fuel stations across the country including the capital city. This is characterized by shortage of road freight transport capacity in the country. The gradual reduction of fuel subsidy has also seen an upward price change.    

Standards, Quality and Testing 

 The Ethiopian ministry of energy established regulatory body to control fuel adulteration practice. However, consumer have challenges in identifying if fuel quality in the market is within set standards. Ethiopian Standard Authority (ESA) is an agency mandated to conduct fuel quality test. Other companies have acquired own density testing equipment for instance glass hydrometer for streamlining their own internal controls   

 

Industry Control Measures 

Do tanks have adequate protection against water mixing with the fuel? 

Yes 

Are there filters in the system which monitor where fuel is loaded into aircraft? 

Yes 

Is there adequate epoxy coating of tanks on trucks? 

n/a 

Is there a presence of suitable firefighting equipment? 

Yes 

 

Standards Authority 

Is there a national or regional standards authority? 

Yes 

If yes, please identify the appropriate national and/or regional authority. 

National: 

Regional: 

If yes, are the standards adequate/properly enforced? 

Yes 

 

Testing Laboratories 

Are there national testing laboratories? 

Yes 

 

 

Fuel Quality Testing Laboratory 

Company 

n/a 

Name  

n/a 

Address 

n/a 

Telephone and Fax 

n/a 

Contact 

n/a 

Standards Used 

n/a 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

 

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