Ethiopia's Ministry of Trade and Regional Integration has raised fuel prices effective April 1, 2026, with white diesel increasing by 16.6% to 163.09 birr per liter. The move comes as the fuel subsidy burden reaches nearly 272 billion birr. Officials cite global oil market disruptions from Middle East conflicts.
Ethiopia's Ministry of Trade and Regional Integration announced fuel price increases effective April 1, 2026. White diesel rose 16.6% to 163.09 birr per liter from 139.84 birr, heavy black diesel climbed 20.4% to 160.68 birr, and gasoline increased 7.7% to 142.41 birr. This marks the second major adjustment in a month and the sharpest monthly surge on record.
Minister Kassahun Gofe attributed the hikes to global oil price surges from Middle East conflicts, including the closure of the Strait of Hormuz, which handles 20% of global oil supply. Shipments to Ethiopia—120,000 metric tons of diesel and 60,000 metric tons of jet fuel—are stranded in the Arabian Gulf. The government has turned to the spot market, where premiums jumped from $9.25 to $92.88 per barrel.
"Even with the current adjustments, domestic fuel prices remain well below actual market levels," officials said. The state still subsidizes 71 birr per liter of diesel and 32 birr for gasoline; without subsidies, diesel could reach 234.17 birr per liter. Total subsidies now exceed 272 billion birr, deemed unsustainable.
Large commercial users face differentiated pricing at 210 birr per liter for white diesel. A national task force prioritizes fuel for logistics, public transport, healthcare, utilities, agriculture, exports, and public institutions. Analysts warn of ripple effects raising transport costs and food prices.
