• Ministry of Trade and Regional Integration raised petrol price to ETB 132.18 per litre. 

• Diesel price increased to ETB 139.64 per litre under latest national fuel price adjustment.

• Adjustment is part of government policy to gradually remove fuel subsidies. 

• Price revision aims to align domestic fuel prices with international import costs. 

• Retail fuel prices are periodically revised by the Ministry of Trade and Regional Integration. 

Why it matters?
Fuel price adjustments directly affect transportation, logistics, and operating costs across Ethiopia’s economy. Higher pump prices can influence inflation, freight rates, and business expenses.

• Government to phase out fuel subsidies for petrol and diesel by February 2026. 

• Policy aims to raise retail petrol and diesel prices to cost-recovery levels. 

• Subsidy removal part of broader cost-recovery and economic reform agenda. 

• Phase-out follows IMF advice to end fuel subsidies under reform programs. 

• Previous subsidy elimination moves included partial diesel/petrol price deregulation in 2025. 

• Reform expected to reduce government fiscal burden from subsidised fuel. 

Why it matters?

Phasing out fuel subsidies shifts price setting to market signals and is scheduled by February 2026. The policy affects transport and logistics cost structures and public finances. It stems from IMF-linked reform directives to lower fiscal pressure. The  steady rise of fuel prices has been the single fundamental factor for cost increment across diverse sectors in the Ethiopian market.