Ethiopia Issues Emergency Fuel Utilization Directive Amid Global Supply Crisis

2026-03-17 - 16:52

The Ethiopia Petroleum and Energy Authority (PEA), has introduced a stringent fuel conservation and prioritization directive designed to shield the national economy from the volatile international oil market. Issued on March 17, 2026, the directive comes as the government warns of significant disruptions to global oil shipments triggered by escalating geopolitical tensions in the Middle East. Following instabilities in international supply chains and the strategically vital Strait of Hormuz, the Authority has mandated that all oil companies and retail stations transition their operations to a high-conservation model. Destaw Mekuanent, Director General of PEA emphasized that fuel must be treated as a strategic resource until the international supply system stabilizes. Under the new guidelines, fuel companies are ordered to prioritize specific key sectors to ensure the country’s essential functions continue without interruption. Consequently, uninterrupted supply has been arranged for national security institutions and key government infrastructure projects, particularly those nearing completion. Furthermore, manufacturing industries, institutions producing basic consumer goods, and large-scale agricultural operations have been granted priority to maintain the domestic supply chain, while export-oriented organizations engaged in international trade are also prioritized to protect the nation’s foreign exchange earnings. The directive establishes strict operational standards for gas stations to prevent illegal hoarding and black-market activities. Effective immediately, stations must prioritize public transport vehicles to facilitate the movement of the workforce. The Director General stressed that refueling is permitted only into a vehicle’s original tank, with a strict ban imposed on station employees dispensing fuel into plastic containers, barrels, or any additional external tanks. Stations found violating the directive by refueling unauthorized entities or engaging in unfair price hikes and “shadow market” activities will face immediate legal action under the National Energy Proclamation. The Authority issued this directive following a recent message from the Prime Minister regarding the necessity of using fuel economically and prioritizing development projects. To closely monitor the implementation process, the Authority has coordinated with trade bureaus at the regional, city, and district levels. These bodies are now tasked with the responsibility of ensuring that fuel tankers arrive on time and that the resource is used exclusively for its intended purpose.