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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Sat Dec 18 2010 - 08:02:24 EST
Ethiopia: Fuel prices rise 22% in 3 months
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December 18 Posted by: <http://www.newsdire.com/user/suleyman/> suleyman |
Motorists were lining up at different petrol retail stations around Addis
Ababa on Thursday December 9, as rumors spread that the price of benzene is
going to increase as of Friday December 10. The Ministry of Trade increased
fuel and fuel prices consecutively in the last three months by a staggering
21.77 percent raising the price from 12.77 birr to 15.55, exacerbating the
inflation that will directly affect the consumer.
The Ministry of Trade on Friday announced newly revised tariffs of various
petroleum products that will take effect as of December 10, 2010 and that
will stay until January 2011.
The ministry adjusted the price for ethanol-blended benzene to be sold at
15.55 birr from the last month price of 14.87. The ministry had increased
the price of fuel and fuel products by 10 percent in October.
Economists argue that the recent high magnitude devaluation added with this
increment of fuel prices is heavily hammering low and middle class society.
Moreover, the recent increment will be in addition to the ever increasing
inflation that really widens the gap between the rich and the poor, they
say, noting that any kind of consumer products and other merchandize prices
are already increasing following the announcement. People living in urban
areas, classified as a consumer society, will be hugely affected as prices
go up.
The Ministry announced that the price increment is in line with the recent
devaluation of the birr and global oil price increase. Both of these factors
have forced it to adjust the price of oil and oil products.
According to the statement from the Ministry, white naphtha will now be sold
at 13.24 birr and kerosene will be sold at 11.75 birr per liter.
Moreover, light black naphtha will be 12.13 birr, heavy black naphtha 11.76
birr and super benzene for aircrafts is adjusted to 15.15 birr per liter.
Globally a barrel of oil's price is currently fluctuating around 85 dollars.
Preparation for Sudanese January 2011 referendum
In related development, the Ethiopian Petroleum Enterprise (EPE) has
disclosed that it will use the Djibouti Port to import petroleum products if
any shortages occur due to the closure of the Sudan Petroleum Corporation
(SPC) for a three months period of maintenance. EPE says it is confident no
fuel shortages will appear.
Capital learnt that the EPE will lift and store more petroleum from Sudan in
the coming month. As per the contract the SPC will be closed once a year for
maintenance. This time starting from February 1, 2011, the SPC will be
closed for three months.
"Based on our agreement our supplier has informed us to lift additional
quantity of gasoline until the refinery is closed," Damenu Kibret, Public
Relations Officer of EPE said. "On our side we have already been storing
petroleum in domestic depots to use during the maintenance period."
Capital learnt that the EPE is lifting 10,000 metric tons a month. Now,
extra trucks have been assigned to bring in more fuel from Sudan. Total
Ethiopia sources confirm that over 200 additional trucks are now assigned to
Sudan.
Meanwhile, an informed source who declined to give his name said that there
is an additional travel procedure to Sudan nowadays.
Earlier the passport of the driver and his assistant were enough to reach
the refinery in Sudan. But now an additional form must be filled out for the
travelers. Unless the form signed by Total Ethiopia is submitted going in
and out of Sudan is not permissible, the source said.
The fear is that conditions could turn out to be different after the South
Sudanese referendum that takes place on January 9, 2011. The EPE has put up
emergency plans should this happens. "If the worst comes, we can make a deal
with another company and this will not take longer to implement," Damenu
said. In his view minor transportation cost is added to supply our petroleum
need from a new deal.
Concerning the Djibouti Port, he further said that they are still using the
port for the supply of other petroleum products. If needed, they will use
the port for fuel too.
There is a public concern that the country will face fuel shortages after
the closure of the Sudanese refinery. In the view of many it won't be open
in three months as per the agreement. The situation in the aftermath of the
referendum is highly likely to hamper movement.
Asked about this the Public Relations Officer said to be confident that the
country will not face any shortages. "Well, we cannot predict about the post
referendum situation in Sudan. We are hopeful that things will go smoothly
as planned. But even if things turn out badly, we have the alternatives.
Until we finish what we have stored in our depot, we have sufficient time to
make new arrangements," Damenu said.
By Groum Abate and Solomon Bekele
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