Zagol oil becomes the latest entrant in the oil market with a capital of 36 million Br, raising the total number of operational fuel companies to 14.
Zagol was licensed by the Ministry of Trade after fulfilling the requirements to construct two vertical tankers with a capacity of 300,000lts and two petrol stations at Afar regional state, on nine hectares of land.
So far, it has opened five petroleum stations in Western Wollega, Afar, Arbaminch and Teppi. It will begin the construction of petrol stations in Southern Arsi, Degehabur and Gojjam, according to Berhanu Teshome, Zagol Oil's marketing manager.
Established by three shareholders, Zagol enters the oil market at a time when the oil producers in the country are struggling to make a profit from the sales of fuel and gas. Almost all oil companies benefit more from imports and retail of lubricants rather than making money from gas and fuel. Currently, there are over 800 petrol stations in the country.