Ethiopia issues emergency fuel-conservation directive as shortages halve diesel supply

On March 17, 2026 Ethiopia's Petroleum and Energy Authority issued an emergency fuel conservation and prioritization directive. By March 31 authorities said over 180,000 tonnes of fuel had not been delivered, halving daily diesel supply; diesel prices were reported to have risen to 163 birr per liter on April 1.

The government directive and reported delivery shortfalls imply tighter domestic fuel availability and higher domestic diesel prices, which can raise transport and input costs and widen fiscal subsidy needs. Those effects may increase import bills and short-term external financing pressure, potentially stressing FX reserves and credit spreads if shipments remain disrupted.

Whether alternative suppliers or resumed shipments reverse the supply shortfall within weeks or if rationing is extended.