A liter of gasoline now costs 47.83 birr (0.89 euro) against 36.87 birr previously, an increase of 29.7%.

That of diesel is now displayed at 49.02 birr (0.91 euro) against 35.43 (+38.3%), according to new prices communicated by the Ministry of Commerce.

“The new fuel price adjustment will be effective (this) Wednesday and until August 6,” the ministry said in a statement carried by state media, appearing to indicate that a new reassessment will take place on that date.

“If fuel prices corresponded to current world prices, a liter of diesel would cost 91.23 birr (1.70 euro) and that of gasoline 82.07 birr (1.53 euro). countries, the government continues to cover 75% of the difference, while the remaining 25% is passed on to the consumer," the ministry explains.

Despite the rise in the price of petroleum products on international markets, "the government has so far only increased fuel prices not exceeding 10%, due to the living conditions of the population", he points out.

However, to avoid indebted the country, the increases should have been passed on to the consumer, estimates the ministry, pointing to the deficit of 10 billion birr (187 million euros) of the Petroleum Fund.

Inflation over 12 months has exceeded 30% for a year in Ethiopia and has been hovering around 35% for six months, with the increase in the prices of food products alone exceeding 40% over 12 months since February.

The global rise in the price of petroleum products and cereals has also melted the foreign exchange reserves of the country, which is very largely an importer.

In its macro-economic report on the 1st quarter of 2022, the Ethiopian investment fund Cepheus capital points out that in December, the foreign exchange reserves of the Ethiopian central bank were "at the lowest for more than a decade, representing approximately one month of import".

Imports of petroleum products over the first nine months of the 2021-2022 fiscal year increased by 75% in value (to 2.2 billion dollars) compared to the same period of the previous year and those of cereals 121% (at 1.8 billion), underlines Cepheus.

© 2022 AFP