Fuel prices in Ethiopia rose on Wednesday after the government cut subsidies, adding to economic hardship for people already grappling with high inflation.
The price of petrol at the pump rose nearly 30 percent to 48.83 birr (about 94 US cents), while diesel rose nearly 40 percent to 49.02 birr under the new pricing rule, which will be in place until August 6. said the Department of Commerce.
According to the business newspaper Addis Tribune, the federal government plans to phase out fuel subsidies.
Prices for fuel, food and other basic necessities have skyrocketed worldwide due to the Ukraine war, hitting vulnerable countries in Africa and elsewhere hard.
The Commerce Ministry said fuel costs for Ethiopian consumers should be almost double if calculated on current global prices.
“But given the state the country is in, the government will cover 75 percent of the (price) difference, while it has been decided that the remaining 25 percent will go to consumers,” it said.
The country of more than 110 million people has seen inflation hovering around 35 percent over the past six months, with food prices in particular seeing a sharp rise.
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