Fuel stations across the country have raised prices by almost 10 percent as the federal government announces its plans for further rollbacks on fuel subsidies.

A liter of benzene now retails for 91.14 birr, up from the 82.60 drivers had been paying for the past few months. The price of a liter of diesel has gone up nearly seven birr to 90.28.

A statement from the Ministry of Trade and Regional Integration reveals plans to enact quarterly price hikes for petroleum products as the federal government looks to remedy market price imbalances brought on by the decision to liberalize the foreign exchange market two months ago.

The government faces costs of up to 250 billion birr in fuel subsidies and payables owed in foreign currency, according to the statement.

Officials hope the Ministry's new 'fuel price adjustment strategy', which was alluded to in the agreement the federal government recently reached with the IMF, will cut down the exorbitant costs.

The strategy envisions raising fuel retail prices to around 117 birr per liter for both benzene and diesel by October 2025.