Ethiopia: Fuel Scarcity in Adama City Sparks Black Market Boom, Price Hikes

Addis Abeba — Drivers in Adama City, situated in the Oromia region, are experiencing a severe and escalating fuel shortage. They attribute this scarcity to the widespread proliferation of black market fuel sales within the city.

One heavy truck driver residing in Adama informed Addis Standard that fuel availability at gas stations is severely limited.

He stated, "Each day, the supply is either insufficient or completely unavailable, compelling individuals to endure lengthy queues."

The driver further explained, "Sometimes, it may take up to three days or even a week for fuel deliveries to arrive." He emphasized that "Fuel is being extensively distributed through the black market outside of the stations."

Another Adama resident, a Bajaj driver, also confirmed the acute fuel shortage within the city to Addis Standard.

"It has been a week since I was able to obtain fuel from a station," he said.

The resident acknowledged that some stations do receive fuel deliveries, but often late at night, around 3:00 AM. "Even then, we are forced to wait in line until 4:00 PM the following day to acquire fuel," he explained.

To secure fuel, the resident stated that drivers are compelled to remain at the station overnight and pay additional fees for protection to maintain their position in the queue. "If one misses a day or arrives late, the station will close, and the only recourse is to purchase fuel from the black market," he added.

The resident further explained that previously, some stations provided sufficient fuel for two or three days at a time, but this practice has ceased.

"On the black market, fuel is sold in small quantities, typically two liters, at exorbitant prices, ranging from 280 to 300 birr," he stated. "Consequently, drivers have been compelled to increase fares beyond the customary rates. For example, a route that previously cost five birr now costs 10 birr."

In response to the fuel shortage observed in the region, the Oromia Trade and Market Development Bureau issued a statement on 29 December, 2024, stating that "while the supply of fuel remains sufficient, illegal activities for unauthorized purposes are causing the shortages."

Tesfaye Gesho, Deputy Head of the Bureau, emphasized that fuel is a critical input for the region's economic development and highlighted that efforts are underway to ensure a stable fuel supply to meet the needs of the transportation sector, agricultural machinery, and other fuel-dependent sectors.

The Bureau also announced that legal action is being taken against individuals involved in the illegal fuel trade.

"We have been working collaboratively across all zones and districts of the region, conducting daily inspections and monitoring," Tesfaye stated. "As a result of these inspections and monitoring efforts, administrative and legal actions have been taken against 44 individuals involved in the illegal fuel trade, with some facing sentences of up to seven years in prison."

According to the deputy head, these efforts have led to the seizure of over 226,000 liters of illegal fuel and petroleum products during the first five months of the current fiscal year.

To prevent and curb the illegal fuel trade, Tesfaye revealed that the Bureau has introduced an electronic transaction system and will continue to strengthen its coordinated monitoring and control efforts. He also noted that the illegal fuel trade is not only a domestic issue but is spreading to border areas.

Recently, severe fuel shortages have affected various regions of the country.

In late November 2024, Addis Standard reported that drivers in the Amhara region were experiencing a significant gasoil shortage, prompting the regional government to implement a weekly quota system. Residents of cities such as Bahir Dar, Gondar, and Debre Birhan described the situation as dire, with black-market fuel prices soaring to 225 birr per liter.

Similarly, drivers in Hawassa, the capital of the Sidama Regional State, have reported an acute and worsening fuel shortage, which they attribute to widespread black-market sales in the city.

In an interview with Addis Standard, Hawassa residents shared that it has become customary to wait in line for over four days at gas stations to fill their tanks or to purchase fuel from the black market, where prices have exceeded 170 birr per liter.

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