Ethiopia Raises Fuel Prices as Diesel Jumps 16.6% Amid Global Supply Pressures
The Ethiopian government has increased retail fuel prices effective April 1, 2026, with white diesel recording the sharpest rise, climbing from 139.84 birr in March to 163.09 birr per liter, according to the Ministry of Trade and Regional Cooperation.
Gasoline prices in Addis Ababa have risen to 142 birr per liter, up from 132.18 birr in March, while kerosene increased to 151 birr from 146.14 birr. Jet fuel prices also rose to 150 birr per liter from 145.23 birr.
The latest adjustment marks the third fuel price increase since December 2025, with white diesel prices rising 26% over the past four months from 129.12 birr to 163.09 birr.
Table: Ethiopia Fuel Prices (April 2026)
| Fuel Type | March 2026 Price (Birr/L) | April 2026 Price (Birr/L) | Change (Birr) | Change (%) |
| Gasoline (Benzene) | 132.18 | 142.00 | +9.82 | +7.4% |
| White Diesel | 139.84 | 163.09 | +23.25 | +16.6% |
| Kerosene | 146.14 | 151.00 | +4.86 | +3.3% |
| Jet Fuel | 145.23 | 150.00 | +4.77 | +3.3% |
Supply Disruptions and Global Price Pressures
Kassahun Gofe, Minister of Trade and Regional Integration, said the price increase follows the failure of a planned delivery of 180,000 metric tons of fuel, prompting the government to introduce prioritization measures to manage supply shortages.
Under the new rationing approach, a centralized unit will oversee fuel distribution, prioritizing critical sectors such as transportation, agriculture, export logistics, and vehicles carrying essential goods.
Global fuel market volatility has also contributed to domestic price pressures. Diesel prices have reportedly increased from around $80 to $230 per barrel, while gasoline has risen from $70 to $150. Additional pressure is expected following Russia’s four-month gasoline export ban, which took effect this week.
Subsidy Burden and Enforcement Measures
Despite rising global prices, the government continues to subsidize fuel imports, spending between 15 and 20 billion birr monthly to cushion consumers.
Authorities have also intensified enforcement efforts against illegal fuel trading, detaining more than 650 individuals and seizing over 720,000 liters of fuel in recent months.
Ethiopia relies entirely on imported petroleum, with annual import costs exceeding $4.2 billion. Officials have urged the public to conserve fuel, reduce nonessential travel, and report illegal fuel market activities as the country manages ongoing supply challenges.
The latest price adjustments follow reforms introduced in December 2022, when the Council of Ministers adopted a pricing framework linked to global oil market movements. Fuel prices had remained relatively stable between May and December 2025 before the current series of increases began.