Severe gasoil shortages prompt Amhara region to enforce weekly fuel quota

Addis Abeba – Drivers in the Amhara region are facing a severe gasoil shortage, prompting the regional government to implement a weekly quota system.

In an interview with Addis Standard, Bahir Dar resident Thomas Gebremariam highlights the increasing difficulties in obtaining fuel, attributing the problem to illegal activities and black market trading.

“Obtaining gasoline from filling stations has become exceedingly challenging,” said Thomas. “After refueling, it may take up to four days before you can obtain gas again.”

He noted that one liter of gasoline on the black market costs as much as 225 birr. “Alternatively, you must pay an additional 1,000 birr to bypass the queue and make a purchase.”

Thomas further emphasized that the fuel shortage has left drivers spending considerable amounts of time idle.

A driver in Gondar City, speaking on condition of anonymity, informed Addis Standard that obtaining fuel from gas stations has become exceedingly difficult. He revealed that one liter of gasoline is being purchased on the black market for as much as 200 birr.

“You have to wait in a long line just to get gas at a station, and even then, you might be turned away and told they’re out,” he stated, expressing frustration over the recurring issue and its significant disruption to daily life.

The situation is equally dire in Debre Birhan city.

Antenew Ayele (name changed upon request), a resident, described the severe fuel shortage, which has led to a sharp increase in transportation fares.

“Three-wheeled vehicles (Bajajs) now charge 15 birr for short trips, compared to the 10 birr we used to pay just a few weeeks ago,” he explained. “This is because there is so little fuel available in the city.”

Antenew, who owns a freight vehicle, revealed that he has stopped operating it due to the ongoing fuel shortage. “Drivers in the city are unable to transport fuel from nearby areas because government security forces have banned such activities, and anyone caught doing so faces imprisonment,” he stated.

“We’re paying nearly 200 birr per liter, and sometimes bribes are required at fuel stations just to secure fuel,” he added.

In response to the ongoing fuel shortage in the Amhara region, the regional Trade and Market Development Bureau issued a statement on 27 November, 2024, outlining the challenges facing the fuel supply and the steps being taken to stabilize the market.

The statement emphasized that diesel shortages had not previously been a concern in the region. However, it highlighted that with 75% of the nation’s benzene supply imported from Sudan, and given the current situation in Sudan and the growing diversion of fuel to the black market, distribution challenges have significantly worsened.

To mitigate the resulting gasoil shortages, the bureau announced the implementation of corrective measures.

According to Fantahun Fetene, deputy head of the bureau, all government vehicles, private automobiles, aviation-related taxi services, and buses will now be required to refuel once a week based on their tank capacity.

“During refueling, the driver’s phone number, vehicle license plate, and the next scheduled refueling date will be recorded to ensure proper service delivery,” Fantahun explained.

The deputy head also revealed that the bureau has been working in collaboration with other institutions to address the issue. As a result of these efforts, Fantahun reported that 135,507 liters of fuel being illegally transported were seized in the past quarter.

The Bureau also reiterated that the retail sale of fuel outside of authorized gas stations is strictly prohibited in the region.

“Those involved in such activities should face consequences, including the confiscation of their product and the revocation of their business licenses,” Fantahun warned.

Furthermore, the deputy head stressed that transporting petroleum products in any container is prohibited for all individuals except licensed irrigation farmers.

The Bureau called on fuel station owners and relevant security agencies to uphold their responsibilities and ensure a legal fuel trading system.

The Amhara region is not the sole area facing a critical shortage of gasoil and a widespread black market for fuel.

Two weeks ago, Addis Standard reported that an acute and worsening fuel shortage has emerged in Hawassa, the capital of Sidama Regional State.

Due to the scarcity of petroleum products, particularly gasoil, drivers have reported that fuel is being sold at exorbitant prices on the black market in Hawassa, reaching up to 170 Birr per liter.

While acknowledging the fuel shortage, Burqa Butula, Deputy Head of the Sidama Trade and Market Development Bureau, noted that of the more than 20 filling stations in Hawassa City, only three or four are currently supplying gasoline, attributing the shortage to supply challenges.

To address illegal sales, Burqa disclosed that a joint task force has been established in collaboration with the Hawassa City Administration and the police to combat nighttime gasoline transactions.

“We have also introduced a scheduling system to ensure fair distribution of fuel among drivers,” he stated.

Officials attribute the fuel shortage observed in the country mainly to the prevalence of illegal fuel trade.

Yesterday, 27 November 2024, Kassahun Gofe, the Minister of Trade and Regional Integration (MoTRI), held discussions with fuel distribution companies regarding the observed gaps in the supply, distribution, and trade of petroleum products.

According to Kassahun, the meeting was convened to specifically address issues such as the illegal fuel trade, including sales in barrels and jerrycans, false claims of fuel shortages at gas stations, and illegal nighttime sales.

“We have emphatically stressed that fuel companies bear primary responsibility for these problems,” the minister stated. “Companies that break the law will face severe penalties.”

This development follows a recent consultation meeting held by the Trade and Tourism Standing Committee of the House of Peoples’ Representatives, in which regional officials and stakeholders in the fuel supply business provided feedback on a draft proclamation aimed at regulating the petroleum products trade system.

During the meeting, which took place on 25 November, 2024, Asha Yahya, chairperson of the standing committee, underscored the importance of the draft proclamation in addressing corruption and other challenges in the fuel sector, particularly in light of the regulatory gaps in the existing proclamation approved in 2013.

According to the draft proclamation, individuals involved in the unauthorized storage, sale, or transportation of petroleum products will face severe penalties, including confiscation of the product, imprisonment for up to three years, and fines ranging from 50,000 to 100,000 birr. AS