Ethiopian Shipping and Logistics Returns to Fuel Import Business After 40 Years

ESL Logo 2

Ethiopian Shipping and Logistics (ESL) has resumed handling petroleum imports after nearly 40 years, marking a major operational shift for the state-owned logistics company and Ethiopia’s fuel supply chain.

The company recently transported 120,000 metric tons of aviation fuel and diesel from Nigeria’s Dangote Petroleum Refinery, located at Dangote Quays in Lekki. The shipment included 80,000 metric tons of jet fuel and 40,000 metric tons of diesel, delivered to the Horizon Oil Terminal in Djibouti through three chartered vessels: MV Kokolight, MT Mostar, and MT Explorer.

Officials said the move represents Ethiopia’s first fuel import from within Africa since the country stopped importing petroleum from Sudan. It also signals a departure from the previous system, under which the Ethiopian Petroleum Supply Enterprise (EPSE) handled fuel imports through its own arrangements.

Demissew Benti, head of ESL’s Market Department, said the operation was intended to correct the perception that ESL lacked the capacity to manage petroleum imports. Lensa Geremew, head of ESL’s Chartering Division, said the shipment was made possible by favorable government conditions and growing pressure on traditional supply routes.

Ethiopia has been seeking alternative fuel sources due to disruptions around the Strait of Hormuz and increasing domestic demand, particularly for aviation fuel. Bole International Airport’s role as a major African aviation hub and Ethiopian Airlines’ expanding operations have placed additional pressure on jet fuel supply.

Ethiopia, which does not produce oil, spent an estimated USD 3.7 billion on fuel imports in the 2024/25 budget year. Fuel import costs are projected to rise further in the coming year.

Source: Capital Ethiopia Newspaper