Ethiopia has lifted import duties on vehicles powered by natural gas, marking a policy shift intended to promote cleaner energy use in transport and reduce the country’s dependence on imported fuel.

The directive, issued by the Ministry of Finance, allows the entry of passenger, freight, and public transport vehicles operating on natural gas without customs charges. The exemption takes effect immediately and will apply to all categories of natural gas-powered vehicles.

Officials said the measure aligns with the government’s plan to commercialise the nation’s untapped natural gas reserves. Although Ethiopia holds substantial deposits, the resource has remained largely unused. The government has recently launched initiatives to process and distribute locally produced natural gas for domestic consumption.

Imports of petrol and diesel vehicles will remain restricted for six months. The ministry said it will strengthen monitoring to prevent illegal entry or circumvention of the rules.

Officials said the directive supports Ethiopia’s plan to expand domestic natural gas utilisation and diversify fuel sources in the transport sector. The government recently inaugurated the first phase of the Ogaden Liquefied Natural Gas (LNG) Project in the Somali region, with an annual capacity of 111 million litres. A second phase is planned to increase output for domestic use.