Ethiopia’s Ministry of Trade and Regional Integration has announced a sharp increase in retail fuel prices, effective Friday, citing escalating oil prices on the international market. The price adjustment affects nearly all fuel types, with the exception of jet fuel, which has seen a minor decrease.
According to the new pricing structure, gasoline now costs 122.53 birr per litre, up from 91.00 birr in October—an increase of 34.6%. Diesel (Light Black Naphta) has risen by 18.6%, from 90.00 birr to 106.77 birr per litre. Prices for kerosene and White Naphta have each jumped by 29.4%, from 90.00 birr to 116.49 birr. Heavy Black Naphta experienced a smaller increase of 2.6%, rising from 104.08 birr to 106.77 birr. In contrast, jet fuel prices dropped slightly from 113.20 birr in January to 109.56 birr in May.
The government attributes these changes not only to global oil price fluctuations but also to ongoing efforts to reduce fuel subsidies as part of Ethiopia’s broader economic liberalization agenda. The ruling Prosperity Party has signaled that phasing out subsidies is necessary to ease fiscal burdens and attract foreign investment.
However, the price hikes have sparked public concern, particularly as inflation remains elevated. Ethiopia’s annual inflation rate stood at approximately 28% in March, driven largely by soaring food and transportation costs. Economists warn that without targeted relief measures, vulnerable households may bear the brunt of rising living expenses, potentially fueling broader economic and social discontent.
Urban residents are especially affected, as wages have stagnated amid climbing prices for essential goods and services.