Ethiopia Raises Fuel Prices in Sudden Shift, Kerosene, Jet Fuel Jump 112 Percent

Mintesinot Niggusie

Ethiopia delivers a steep fuel price increase in its latest adjustment, even as authorities have recently moved to stabilise supply by restoring daily diesel distribution following a temporary disruption that had tightened market availability.

Kerosene and jet fuel recorded the sharpest revisions, each more than doubling within a month. Kerosene rose from 151.39 birr to 320.66 birr, while jet fuel climbed from 150.48 birr to 319.76 birr, both up 112 percent. The scale of the increase is expected to filter through household energy use as well as aviation operating costs.

Gasoline prices increased from 142.41 birr to 167.50 birr, a 17.6 percent rise. White diesel moved from 163.09 birr to 180.46 birr, up 10.7 percent, while black diesel, covering both light and heavy grades, recorded a more modest increase of about four percent.

The latest price adjustment comes shortly after authorities reinstated daily diesel supply of around 9 million litres, aimed at easing distribution constraints that had emerged during earlier import disruptions. The move was intended to stabilise availability across the market after intermittent shortages linked to logistics and external supply pressures.

Analysts say that while the measure has helped restore supply, it has not insulated fuel prices from upward pressure driven by import costs and global market volatility. Ethiopia's heavy reliance on imported petroleum means that international price movements continue to transmit quickly into domestic fuel pricing.

Ethiopia has recently brought inflation down to single-digit levels, with the Ethiopian Statistical Service reporting headline inflation at about 9.4 percent in March 2026, extending a disinflation trend that has held since late 2025 after a prolonged period of double-digit price growth.

However, the outlook is increasingly clouded by external risks. Analysts warn that renewed conflict tensions in the Middle East could spill over into global energy markets, potentially reversing recent gains. Rising oil prices and freight costs are seen as key transmission channels that could quickly feed into domestic inflation, pushing it back into double-digit territory.