Ethiopia: Drivers Queue for Days As Hawassa's Fuel Shortage Reaches Crisis Point - Black Market Prices Hit 170 Birr Per Liter

Addis Abeba — Drivers in Hawassa, the capital of Sidama Regional State, report an acute and worsening fuel shortage, which they attribute to widespread black market sales within the city.

In an interview with Addis Standard, Hawassa residents shared that it has become customary to queue for over four days at gas stations to fill their tanks or resort to purchasing fuel from the black market, where prices reach over 170 birr per liter.

A taxi driver in Hawassa City, who requested anonymity for safety reasons, explained that the issue has significantly worsened since April 2024.

"Gasoline is being widely sold on the black market," the driver stated. "While we're waiting in line, cars come and go two or three times, refilling their tanks. They pay the attendant 50 birr each time they come around."

However, he revealed that other drivers are forced to spend "more than four days just to get fuel" and are only allowed to refuel once a week, a restriction from the previous practice that permitted them to purchase gasoline at least twice a week.

The taxi driver shared with Addis Standard the challenges he encountered when attempting to refuel his vehicle recently.

"After I filled up my tank last Thursday, I have not succeeded in getting fuel despite arriving early and lining up at a gas station every day since Saturday," he expressed in frustration.

Furthermore, he explained that fuel is now being sold on the black market within the city at exorbitant prices, reaching up to 160 birr per liter. He described the situation, stating, "Fuel has become a commodity that can be purchased in stores."

A Bajaj (three-wheeler) driver in Hawassa City, who requested anonymity, informed Addis Standard that the informal sale of fuel is occurring openly during daylight hours.

"Fuel is being sold more frequently at bus stops than at gas stations," he stated. "This is something known not only to the security forces but to every resident."

Another taxi driver confirmed that the black market fuel trade in Hawassa City has reached "an alarming level."

He explained that fuel is being smuggled out of gas stations, with some vehicles, such as older Corollas, modifying their tanks to hold more fuel than standard capacity. "I've seen it with my own eyes: a private car filled up with 16,000 birr worth of gasoline and drove off," he added.

The taxi driver further noted that profiteers purchase gasoline at gas stations for 91 birr per liter and resell it to retailers for 110 or 120 birr, while drivers in the city end up buying this gasoline at prices as high as 170 birr per liter.

To illustrate the severity of the fuel shortage, he pointed out, "Yesterday, for example, out of more than 20 gas stations in Hawassa City, only two have gasoline."

According to him, the fuel scarcity at gas stations, combined with the high prices on the black market, is forcing taxi drivers to either overcharge passengers or reduce the distances they cover.

"Previously, we charged 10 birr for a trip from Menehariya to Piazza. Now, we don't even go that far and charge 10 birr for half the distance," he stated. "It's unthinkable to raise our fares when we're paying double the price per liter for gasoline."

The taxi driver also disclosed that his daily profit has now shrunk to 200 birr.

Officials from the Sidama Regional State have stated that they have implemented measures to prevent nighttime gasoline sales in an effort to curb illegal activities.

In an interview with state media, Burqa Butula, Deputy Head of the Sidama Trade and Market Development Bureau, acknowledged the fuel shortage.

He explained that the Bureau is collaborating with Ethiopian Petroleum Supply Enterprise, which is a government entity responsible for supplying refined petroleum products, to address the issue.

The deputy head noted that of the more than twenty filling stations in Hawassa City, only three or four are currently providing gasoline, attributing the shortage to supply challenges.

"The fuel supply is not proportional to the number of vehicles in the city," he emphasized.

To address illegal sales, Burqa disclosed that a joint task force has been established with the Hawassa City Administration and the police to crack down on nighttime gasoline transactions.

"We have also introduced a scheduling system to ensure fair distribution of fuel among drivers," he added.

AllAfrica publishes around 500 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.