Ethiopian Government reportedly intends to increase petrol price to 115 birr per liter. The Ministry of Trade and Regional Development today increased fuel prices by around 10%. New price of gasoline is 91.14 Birr/Liter, while new diesel price is 90.28 Birr/Liter.
According to informed sources, the government will gradually raise petrol and diesel price to 115 birr per liter. Around 2 months ago, the government introduced macro economic reforms. The reforms led to depreciation in the value of Ethiopian currency birr. Dollar to Birr exchange before the macro economic reforms was 57 birr per US dollar. Current exchange rate is around 125 birr per US dollar.
Depreciation in the value of birr is leading to rise in the prices of food items and other commodities. One of the main reasons behind rise in fuel prices is withdrawal of government subsidies. The government is expected to gradually withdraw over 200 billion birr subsidy given to oil sector, which could lead to rise in gasoline/diesel prices to around 115 birr per liter.
Read more..
Ethiopian PM Abiy Ahmed Meeting with TPLF Chairman Debretsion