Ethiopia urges fuel conservation, accelerates shift to EVs amid global supply concerns

Ethiopia has called for fuel conservation and accelerated adoption of alternative energy solutions as global oil supply disruptions linked to tensions in the Middle East weigh on the country.

ADDIS ABABA, March 20 (Xinhua) -- Ethiopia has called for fuel conservation and accelerated adoption of alternative energy solutions as global oil supply disruptions linked to tensions in the Middle East weigh on the country.

The Ethiopian Petroleum and Energy Authority (PEA) on Tuesday issued a directive urging citizens to conserve fuel products and play their part in shielding the country from the global oil price shocks triggered by the ongoing conflict in the Middle East.

The move comes amid growing pressure on domestic fuel supply, with long queues forming at filling stations in Addis Ababa and some outlets temporarily closing due to shortages.

Noting that petroleum products are imported and paid for in foreign currency, the authority has instructed fuel distributing companies and retail stations to operate in a high-conservation way.

The PEA also ordered fuel companies and stations to supply oil products primarily to security establishments, state-run projects, manufacturing industries and export companies.

On Monday, Prime Minister Abiy Ahmed called for responsible fuel use, warning that countries depending on imported oil are facing difficulties in securing adequate supplies.

In a message posted on social media platform X, Abiy urged all stakeholders to conserve fuel and prioritize its use for essential services until the situation stabilizes and normal supply conditions resume.

On Tuesday, the Ministry of Transport and Logistics issued a national call, encouraging all sectors of society, including government institutions and private enterprises, to accelerate the transition to electric vehicles (EVs) and natural gas-powered vehicles as a critical buffer against external shocks.

As part of the efforts to promote electric mobility, Ethiopia in 2024 banned the import of fossil fuel-powered vehicles and introduced tax incentives on EVs.

Under the policy, duties were reduced to 15 percent for fully built imported EVs, 5 percent for semi-assembled units and zero for completely knocked-down kits assembled locally, to encourage domestic assembly and wider adoption of EVs. ■