Thursday, February 22, 2024
NewsDomestic fuels 7% up to account for escalating international oil benchmarks

Domestic fuels 7% up to account for escalating international oil benchmarks

Consumers and businesses will pay an average of seven percent more at the pump, as Ethiopia adjusts domestic fuel prices amid ongoing volatility in global energy markets.

The Ministry of Trade and Regional Integration said the price hikes, effective as of tomorrow, were necessary to keep local rates in line with crude oil benchmarks.

In 2022, the average OPEC oil price hit USD 100.08 per barrel, though as of August 29 it had fallen to USD 84 – still elevated from pre-pandemic levels, according to Trading Economics.

In a statement issued on Tuesday, the Ministry of Trade & Regional Integration outlined price hikes averaging seven percent for five main petroleum products.

Benzene saw a 7.8 percent increase and is now 74.85 birr per liter, diesel and heavy black diesel prices jumped by eight percent to 76.85 birr and 61.07 birr per liter respectively, jet fuel prices rose 4.95 percent to 68.58 birr per liter, while light black diesel increased 7.33 percent to 62.22 birr per liter.

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According to a statement by the Trade Ministry, globally, the price of crude oil which was previously USD 75 per barrel, increased from USD 86 per barrel. At the same time, the Ministry noted that the price of one barrel of diesel rose from USD 88.80 to USD 120.

However, as the Ministry reported, only 50 percent of this price increase was passed on to consumers through higher fuel prices, while the government subsidized the remaining 50 percent through subsidies. This helped cushion the impact of the global rise in oil prices and prevented the full effect being transferred to domestic consumers as analyzed by the Ministry.

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Video from Enat Bank Youtube Channel.

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