News: Gov’t cracks down on fuel hoarders; tankers found ‘hiding’ in Afar region

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News: Gov’t cracks down on fuel hoarders; tankers found 'hiding' in Afar region
News: Gov’t cracks down on fuel hoarders; tankers found 'hiding' in Afar region

Africa-Press – Malawi. January 6, 2025 2 minutes read Addis Abeba – The Ethiopian Petroleum and Energy Authority announced that tankers carrying fuel destined for Addis Abeba and other regions were discovered while “hiding” in the Afar region, specifically in an area known as Serdo Admas, over the weekend. The Authority stated that it is collaborating with Afar regional security forces to retrieve the fuel tankers from their concealed locations.

In a statement issued on 05 January, 2025, the Authority highlighted that the drivers of the fuel tankers had hoarded fuel, driven by unfounded expectations of a fuel price increase at the end of the month. It accused these drivers of intentionally creating fuel shortages in cities across the country by depriving gas stations of supplies, thereby causing significant hardship to the public.

“As their illegal activities have been concretely proven, the government will require them to cover the cost of the fuel, which was provided as a subsidy to the public,” the statement reads. “The perpetrators will also face legal consequences for market disruption.”

The Authority further noted that illegal activities in the fuel trade have been increasing, contributing not only to shortages but also to delays in fuel delivery, as drivers seek to exploit the situation for additional profits.

“Since this illegal practice has been confirmed as a significant violation, it prompted the government to take stringent measures against those involved,” the statement said. “Beyond the disruption of supply chains, the perpetrators are undermining the state’s efforts to stabilize the fuel market.”

This government action follows an announcement by Kassahun Gofe (PhD), Minister of Trade and Regional Integration, last week regarding legal and administrative measures against individuals and entities involved in illicit activities within the fuel trade system.

“Illegal activities observed include selling fuel through manual transactions instead of digital payments, unjustified refusal of service at fuel stations, and underreporting fuel stocks to regulatory bodies,” he emphasized.

In recent months, long queues of vehicles lining up to refuel at gas stations have been observed in various cities across the country. However, Kassahun stated that “there is no actual shortage of gasoline supply in the country.”

Previously, Addis Standard reported that fuel scarcity has been evident in several cities across the country, intensifying contraband trade and driving price increases. Earlier last week, the publication highlighted severe and worsening fuel shortages in Adama City, located in the Oromia region. This shortage has been linked to the widespread proliferation of black-market fuel sales. Residents revealed that fuel on the black market is often sold in small quantities, such as two liters, at inflated prices ranging from 280 to 300 birr.

In late November 2024, Addis Standard also documented significant gasoil shortages in the Amhara region. In response, the regional government introduced a weekly quota system. However, residents of cities such as Bahir Dar, Gondar, and Debre Birhan described the situation as critical, with black-market fuel prices soaring to 225 birr per liter.

Similarly, drivers in Hawassa, the capital of the Sidama Regional State, have reported acute and escalating fuel shortages, also attributed to rampant black-market sales. In an interview with Addis Standard, residents disclosed that waiting in line for over four days at gas stations has become a common occurrence. Many are compelled to purchase fuel from the black market, where prices have surpassed 170 birr per liter. AS

TagsContraband fuel trading Crack down on fuel hoarders Ethiopia Fuel shortage in Ethiopia Copy URL URL Copied January 6, 2025 2 minutes read Show More Facebook X LinkedIn Tumblr Pinterest Reddit VKontakte Share via Email Print

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