Ethiopia Doubles Diesel Supply to 9 Million Litres as Subsidy Bill Swells

Mintesinot Niggusie

Ethiopia has doubled its daily diesel supply to 9 million litres, restoring volumes to levels seen before the Middle East conflict, Finance Minister Ahmed Shide announced[cite: 2]. The increase reverses an earlier cut that had reduced supply to about 4.5 million litres per day due to global fuel disruptions[cite: 2].

To sustain the higher volumes, the government will allocate an additional 20 billion birr each month for fuel subsidies, pushing the total subsidy bill beyond 300 billion birr[cite: 2]. Diesel shipments from Djibouti to Addis Ababa have already started[cite: 2].

The adjustment follows rising demand from transport and production sectors, which have been operating under constrained fuel access in recent months[cite: 2].

Supplies of petrol and aviation fuel have also returned to levels recorded before the conflict[cite: 2]. The move comes as global oil markets remain under pressure from supply disruptions in key transit routes, complicating fuel access for import-dependent economies[cite: 2].