Ethiopia saves over 5 billion birr cutting fuel subsidy

The Government of Ethiopia has managed to save over 5 billion Birr in three months period by partially cutting fuel subsidy.

The government has reduced the amount of money it spends to subsidize fuel by around 50% in the last three months period from 10 billion Birr to 4.7 billion Birr. During the first quarter of the current Ethiopian budget year started July 8, 2022, the Government of Ethiopia has managed to save 5.3 billion Birr from fuel subsidy as a result of the new directive that allowed the government to subsidize only public transport service providers.

As a result of the new directive introduced a few months ago, fuel smuggling to the neighboring countries has also declined, according to the report of the Ministry of Trade and Regional Integration presented to the members of parliament yesterday afternoon (Wednesday).

The report indicated that some 163,000 vehicles are registered and became beneficiary of the fuel subsidy, while 1,1109 fuel station in the country have integrated their payment system with Tele Birr, payment platform of the state-owned telecom company – Ethio Telecom.

Before the introduction of the new fuel subsidy directive by the Government of Ethiopia, all automobiles in the country used to benefit from fuel subsidy. Meanwhile after the new directive, the price of benzine per liter has increased to around 57 Birr from around 36 Birr.