A 180,000 metric ton oil shipment destined for Ethiopia has been disrupted by the Middle East conflict, as the closure of the Strait of Hormuz and collapsing production in war-torn nations sent global crude prices surging threefold.
“The problem is not limited to the closure of the Strait,” Minister of Trade and Regional Cooperation Dr. Kassahun Gofe told Parliament on Wednesday. “Oil production has stopped and refining has declined significantly due to the war and crisis in producing countries.”
Related articles
The disruption has knocked out Ethiopia’s regular procurement pipeline for the 180,000 metric tons it had planned to import, forcing the government to scramble for alternatives. Gasoline supply remains at 80 to 100 percent coverage, but white diesel and jet fuel, critical for transport, agriculture, and aviation, have dropped to just 50 percent of required levels.
The gap between gasoline and industrial fuels signals a problem that reaches beyond the pump. Diesel powers Ethiopia’s freight trucks, construction equipment, and the agricultural mechanization push the government has been betting on. Jet fuel shortages, meanwhile, threaten operations at Addis Ababa Bole International Airport, the busiest aviation hub in East Africa and home base for Ethiopian Airlines, the continent’s largest carrier by revenue.
Dr. Kassahun told lawmakers the government has made a “special decision” on maintaining fuel supply, though he did not disclose specifics. A dedicated situation room has been established to monitor the crisis in real time, a move that underscores the severity of the disruption.
The minister was presenting his ministry’s eight-month performance report to Parliament when he delivered the extended briefing on the fuel situation, suggesting the issue has climbed to the top of the government’s economic agenda.
Ethiopia imports virtually all of its petroleum products, making it acutely vulnerable to disruptions along its supply corridor through Djibouti and the Red Sea shipping lanes. The Strait of Hormuz, through which roughly a fifth of the world’s oil passes daily, is the chokepoint connecting the Persian Gulf to global markets.
A threefold spike in global oil prices does not just raise costs at the pump. For a country already managing foreign exchange constraints, it means more dollars chasing fewer barrels, compounding pressure on the birr and squeezing an import bill that was already stretched thin.
The coming weeks will test whether the situation room and the government’s undisclosed “special decision” can bridge the supply gap before diesel and jet fuel shortages begin cascading through the broader economy.
