Ethiopia to subsidize funds for fuel in three months: minister

Ethiopia said Thursday it would subsidize 342 million birr (39.36 million U.S. dollars) for fuel in the coming three months to reduce the impact of the increment in fuel price on low-income people of the country.

Girma Birru, minister of trade and industry, said in a statement that the new fuel price, which will go up 20 percent, has become effective as of Wednesday following the decision passed by the council of ministers.

Girma said the government has continued subsidizing the cost of fuel to reduce the economic impact on the low-income people. The government has spent 1.6 billion birr (184 million dollars ) to subsidize fuel price over the last 16 months.

He said the new price has been fixed in a way that creates no inflation after due consideration on the living conditions of the society.

Diesel, kerosene, super kerosene and benzene are among the major fuel products Ethiopia imports, Girma said, adding that diesel takes 54 percent of the imported fuel.

Girma said his ministry will take necessary measures on those who try to get undue benefit from the price rise.

Ethiopia has imported 1.9 billion liters of various types of fuel during the past nine months, Girma said.

He also said the government spent around 7.2 billion birr (829 million dollars) for the stated volume of imported fuel.

Source: Xinhua