Ethiopia: Oil price increase by over 100 Birr

Addis Zemen newspaper quoted retailers as saying that the price of oil has increased by more than 100 birr.

Nuredin Tseha, owner of a 4 kilo retail store, told the newspaper:

“Oil has gone up from 330 birr to 450 birr without knowing the reason.

We import five liters of oil from 390 birr to 420 birr, and it will not be profitable unless we pay 500 birr for the district and taxi fare.

The current price of oil is not commensurate with the standard of living of many citizens.

The consumer does not want to be confused by what has happened. We can’t sell our money as merchants. “

Retail shop owner Ato Hunegnaw Beyene: ፦

“The price of oil followed the holiday and we hoped it would be fixed by the end of the holiday.

The wholesaler has increased the price of 5 liters of oil from 90 to 120 birr.

We were confused about how much it would cost to sell more than 400 birr until it reached the store.

He said that as before, there is no buyer in terms of price.

We do not understand what the increase is about. “

Which section of society can buy and use at this price? “Unless the government identifies and solves the problem, oil can only become a food for a few people.”

Government response ፦

Kassahun Msoat, Director of Business Inspection, Evaluation and Control at the Ministry of Trade and Industry, said the price of oil has been underestimated.

He said the increase is unacceptable and illegal as oil is taxed at a rate of 5 percent.

Following the imposition of customs duty, traders have increased their duty-free imports simply for the purpose of amassing wealth.

Five months ago, the price of 5 liters of oil, which was selling for 300 birr, was reduced to 330 birr.

It has now reached 400 birr.

The oil currently being sold was previously tax-free and should have been sold at the same price as before.

He said the ministry is in talks with states and city administrations to address the illegal increase.