Ethiopia: #asdailyscoop - Fuel Transporters Profit Margin Raised By 42 Percent Following Ultimatum to Boycott

26 April 2022
Addis Standard (Addis Ababa)

Addis Abeba — The Ministry of Transport and Logistics agreed to raise fuel transporters' profit margin by 42 percent (32,000 ETB) effective early May 2022, reports said.

Transporting fuel from Djibouti to Addis Abeba sets truckers back 100,000 ETB per trip. The cost breakdown includes outlays for spare parts, drivers' wages as well as port fees.

Hitherto fixed by the government at 75,000 ETB, truckers used to incur losses to the tune of 25,000 ETB a trip. The loss went up to 50,000 ETB for trips between Djibouti and Bahir Dar.

Three weeks ago, the Ethiopian Bulk Fuel Transport Owners Association issued an ultimatum for the Ministry to address the problem within 10 days. Failing that, it called on its members to strike. Soon after, the authorities thrashed out issues with union reps, culminating in reaching an amicable deal.

The ministry agreed to increase the profit margin from 75,000 ETB to 110,000 ETB per trip. Though the association asked for a raise of 60 percent, the government would not budge beyond 42 percent. Truckers would be earning 110,000 ETB for hauling fuel between Addis Abeba and Djibouti. AS

Read the full report here.

Read the original article on Addis Standard.

Tagged:
Copyright © 2022 Addis Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.