Ethiopia to Reduce Fuel Subsidy, Raise Oil Prices

fuelEthiopia's Ministry of Trade and Industry announced that it has decided to cut down fuel subsidy to 75 percent, subsequently slightly raising fuel prices so users cover the 25 percent. The Ministry has related that the Ethiopian government has spent 24.05 billion birr (over $608.5 million) for oil price subsidy in the last two years alone.

Kassahun Mulat, Pricing Research, Monitoring and Control Director at the Ministry of Trade and Industry, citing that subsidy allocated for stabilizing fuel price has increased by more than 1.5 billion birr in December 2020, the government has been prompted to make the reduction in subsidy.

Mr. Kassahun has also highlighted efforts of the Ethiopian government to stabilize prices of consumption goods during the coronavirus pandemic.

Source: FBC

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