· Capital Ethiopia · Eyasu Zekarias
Gov't raises fuel prices by 16.6% as subsidy burden reaches 272 billion birr
Topics:EconomyLaw and policy
Summary of the Capital Ethiopia report
The Ministry of Trade and Regional Integration raises white diesel by 16.6% to 163.09 birr per litre from April 1, 2026. Gasoline rose to 142.41 birr in March. The fuel subsidy has reached nearly 272 billion birr, and the state still pays about 71 birr per litre of diesel. A task force gives priority supply to freight and public transport.
Key points
- White diesel rose 16.6% to 163.09 birr per litre from April 1, 2026.
- Gasoline rose 7.7% to 142.41 birr per litre in March 2026.
- The total fuel subsidy has reached nearly 272 billion birr.
- The government subsidises about 71 birr per litre of diesel and 32 birr per litre of gasoline.
Real.et analysis
Capital Ethiopia reports that the Ministry of Trade and Regional Integration raised the price of white diesel by 16.6% from April 1, 2026. Diesel now costs 163.09 birr per litre, up from 139.84 birr. It is the second large change in one month. In March, gasoline rose 7.7% to 142.41 birr per litre and heavy black diesel rose 20.4% to 160.68 birr. Large commercial users pay 210 birr per litre for white diesel. The total fuel subsidy has reached nearly 272 billion birr. The government still pays about 71 birr of each litre of diesel and 32 birr of each litre of gasoline. Without the subsidy, diesel could cost 234.17 birr per litre.
What this means for residents
Diesel moves food, goods and most buses and trucks. The article quotes analysts who warn that higher diesel prices raise transport costs and then food and consumer prices. If you depend on minibuses, watch for a change in the official fares. If you own a car with a gasoline engine, the March price of 142.41 birr applies.
The gap between the pump price and the cost without subsidy is large. The government says the present subsidy cannot continue. So more price rises are possible. Plan your household budget with that in mind.
What this means for builders
Diesel is an input for construction. It runs trucks, mixers and generators. Higher diesel prices could raise the delivered price of sand, gravel and cement. Ask suppliers whether a quote includes transport and how long it is valid. Our construction material prices pages track bureau prices. For sand and gravel, see sand and gravel prices.
Background
Minister Kassahun Gofe links the rise to supply problems caused by the conflict in the Middle East and the closure of the Strait of Hormuz. The article says 120,000 tonnes of diesel and 60,000 tonnes of jet fuel for Ethiopia were held up in the Gulf. A national task force now directs fuel first to freight, public transport, essential services, mechanised farms, export industries and major public institutions. For the effect on commuters, see our summary of The Reporter story from Megenagna.