FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo
The nation’s fuel supply is contracted to freight companies that transport it by oil tankers across the approximately 900Km trek from Djibouti to depots in Addis.

PetroChina offered the lowest bidding price of 27 billion Br to freight nearly 2.2 million tonnes of petroleum products in 2019.

Three international companies, Vitol, Trafigura and PetroChina, bid on the tender, while 36 responded to the tender, which was initially floated in late September but was then cancelled and re-floated on October 28.

During the financial opening held on November 21, 2018, at the Ethiopian Petroleum Supply Enterprise, the bids to transport gas oil, regular gasoline and jet fuel through Djibouti or Eritrean ports were made in two credit schemes of 150-day and 360-day payment periods.


PetroChina, a Chinese oil and gas company established in 1999, offered to freight the petroleum products through a Djibouti port for the lowest cost of freight (CFR) at 4.78 dollars a barrel for gas oil, 5.07 dollars a barrel for regular gasoline and 5.15 dollars a barrel for jet fuel for a 150-day payment period.

For the 360-day payment period, the lowest price offered by PetroChina for cost of freight (CFR) was 6.92 dollars a barrel for gas oil, 7.22 dollars for regular gasoline, and 7.30 dollars for jet fuel through a Djibouti port.


“We evaluate financial offers by the lowest cost of the combined price of petroleum products and the cost to use the ports,” said Abayneh Awol, chairperson of the tender committee and manager of the petroleum supply & sales department at the Enterprise. “The results of the financial evaluation will be announced next week.”


Most of the participants have transported fuel to the nation before. Trafigura was the winning company for this year, while PetroChina won the bid for 2017.

After the fuel supplies arrive at depots inside the country, the Enterprise distributes the fuel to 26 oil retailers. The major distributors in Ethiopia are National Oil Company (NOC), Yetebaberut Beherawi Petroleum, Oil Libya and Total, which together operate around 800 fuel stations scattered throughout the country.

Ethiopia’s consumption of fuel products is estimated at around 12.4 million litres a day and has been increasing by an average of 10pc every year since 2013. Last fiscal year, the nation consumed about 4.3 billion litres of fuel, with gas oil, nafta, taking the lion's share.


Trafigura, a Singaporean firm, procured the 2018 delivery of gas oil with the lowest freight price offer of 3.69 dollars CFR per barrel through Djibouti and 3.97 dollars a barrel CFR for regular gasoline. The company supplied 1.4 million tonnes of petroleum for an estimated cost of 22 billion Br.

“Fluctuation of the international price of oil and variation in the exchange rate and credit period of payment are major determining factors of cost of fuel," according to Serkalem Gebre Kristos (PhD), former CEO of Dallol Oil with over a decade of experience in the market. “Outside the quantity of the fuel purchase, the rest is out of our control.”

In addition to the procurement conducted through this open bid, equal amounts will be purchased through direct government-to-government transactions from Sudan and Kuwait.

This month the government amended fuel retail prices, a year and half after the last amendment was made. Following the new adjustments, the gasoline price changed to 19.69 Br per litre from 18.77; kerosene was raised to 17.78 Br a litre from 16.35; and jet oil increased from 25.7 Br to 27.08 Br.


PUBLISHED ON Nov 27,2018 [ VOL 19 , NO 970]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.

Editors' Pick

Agenda

Realty Roulette

Feb 24 , 2024 . By MUNIR SHEMSU

Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...

Fortune News

A Tooth Extraction for Growth, with the IMF as Dentist

Feb 10 , 2024 . By MUNIR SHEMSU

In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...

Editorial

Is Ethiopia Drifting into a Diplomatic Abyss?

Jan 7 , 2024

In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...

Agenda

PEELING BACK LAYERS

Sep 30 , 2023 . By AKSAH ITALO

On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...

Commentaries

The Geopolitics of Africa's Debt Crisis

The United States has a population of roughly 330 million, while all NATO countries c...

The Pandemic Financing Developing Countries Need

Pandemic preparedness was on the agenda at last week's Spring Meetings of the World B...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Prosperity Party Tries Economic Tightrope Walking Without a Net

Apr 27 , 2024

The Prosperity Party (PP) - Prosperitians - is charting a course through treacherous...

Governor Mamo Tests Transparency. Will It Pass a Test of Time?

Apr 20 , 2024

In a departure from its traditionally opaque practices, the National Bank of Ethiopia...

Policy Espresso Demands a Strong Brew to Transform Negative Dynamic

Apr 13 , 2024

In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...

Blundered CBE Plunders Privacy Naming, Blaming and Shaming for a Glitch's Recovery

Apr 6 , 2024

In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Betting on Virtual Solutions for Real Impact

Since graduating from law school, I have attended countless women's conferences and w...

Hunger's Grip on Mothers, Children of Addis Abeba

I witnessed a scene that left me heartbroken at the health centre. Several mothers w...

Life Matters

Offsetting Recognition vs. Anonymity

Engrossed in thought, I was abruptly pulled back to reality by a booming male voice....

Untapped Potential of Online Commerce

A young woman residing in Addis Abeba, found herself captivated by the potential of o...

Back
WhatsApp
Telegram
Email