Addis Abeba — The government has increased the retail price of gasoil to 112.67 birr, representing an 11% rise.

Effective in Addis Abeba starting from 23 March, 2025, the price of a liter of diesel and kerosene has also increased to 107.93 birr, reflecting a nine percent rise.

According to the Ministry of Trade and Regional Integration, this adjustment is part of the regular quarterly fuel price revisions. However, the latest increase occurred in less than three months since the previous adjustment.

On 07 January, 2025, Addis Standard reported that the price of a liter of gasoil had surpassed the 100-birr mark, reaching 101.47 birr, an increase of 11.5%.

The latest price hike comes just days after Prime Minister Abiy Ahmed told parliament that the government is allocating substantial funds to subsidize fuel prices and mitigate the rising cost of living.

He stated that while the global market price of fuel stands at 129 birr per liter, the government covers 28 birr per liter in subsidies, allowing domestic sales at 101 birr per liter.

The prime minister also revealed that the government had previously spent 72 billion birr on fuel subsidies. "Despite this, the government continues to provide significant subsidies on various essential products to reduce the financial burden on low-income citizens," he said.

Alongside the sharp rise in fuel prices, the country is also experiencing a severe fuel shortage. Addis Standard has been covering the fuel crisis across various regions, most recently in the Afar region, where Bajaj drivers have been unable to purchase gasoline from official stations for nearly a year. As a result, they have been forced to rely on the black market, where prices have surged to 300 birr per liter.

Drivers in Adama City, in the Oromia region, are also facing an escalating fuel shortage, which they attribute to the widespread proliferation of black-market fuel sales.

Similarly, in November 2024, Addis Standard reported that drivers in the Amhara region were struggling with a severe gasoil shortage, prompting the regional government to implement a weekly quota system. Residents in 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.

The crisis extends to Hawassa, the capital of Sidama Regional State, where drivers report an acute fuel shortage, also linked to black-market sales.