Multifarious intervention schemes have been implemented to address the shortage of fuel supply, as well as the distribution and quality challenges experienced in Ethiopia, the Ministry of Mines, Petroleum and Natural Gas has said.
In an exclusive interview with The Ethiopian Herald, State Minister Ambassador, Dr Koang Tutlan said fuel shortage has occurred because of a 10% annual demand growth.
As fuel is a strategic commodity of Ethiopia, it has significantly contributed in the country’s development over the past 10 years, he added.
“Although the demand for fuel increased by 10%, the terminal capacity has not improved,” he said. “There are 2 500 fuel trucks, which were registered to fetch fuel, but only 1 900 are currently transporting fuel,” he stated.
According to the minister, both the number of fuel distributing companies and stations are small. “While Kenya with a population of about 40 million people has over 2 000 fuel stations, Ethiopia with 100 million population has only 800 served by 15 companies.”
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Although studies suggest Addis Ababa has 250 fuel stations, the city is alleged to only have 103 stations, which has hampered fuel services. The city’s fuel distribution is also hampered because of traffic accidents, floods and internet network breaks, said Tutlan.
In response to the transport related constraints, the state minister said, “The government has decided to fetch 60% of the annual fuel importation with rail. For this, it has purchased 110 fuel carrying trains each of which has 36 wagons.
“This process requires connecting Horizon and Awash Terminals in Djibouti and Ethiopia to the main rail route with 500 and 300 meters of rails, respectively.”
To strengthen control capacities of the states, the ministry has signed Memorandum of Understanding(MoU) with five states with a view to offering training and purchasing lab equipment for them.
According to the ministry, government spends up to US$1.5 billion annually for fuel import.
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