Tigray Regional State is experiencing an acute fuel shortage that has impacted agriculture, disrupted businesses, and led to the rapid expansion of an illicit fuel market. Regional officials blame federal agencies for cutting off supplies, while the latter cite nationwide disruptions and technical failures at Djibouti port terminals.
Fuel scarcity in Tigray State has worsened over the past two months, forcing desperate businesses and farmers to resort to the parallel markets. Petrol prices on the illicit market surged to as high as 300 Br a litre, almost three times the official rate of 112 Br.
Gebremeskel Tareke, head of Tigray State's Trade & Export Agency, appealled in a letter to federal agencies, including the Ministry of Trade & Regional Integration (MoTRI), the Petroleum & Energy Authority (PEA), and the Ethiopian Petroleum Supply Enterprise (EPSE). He disclosed that fuel deliveries declined sharply starting in January 2025, reducing to two trucks before halting entirely by March 13.
"The region is in a deep crisis," said Kassahun Kindye, head of consumer protection at Tigray's Trade & Export Agency.
According to him, the region received about nine million litres of fuel monthly, despite an actual demand of approximately 13 million litres. Supplies plummeted to five million litres two months ago, and deliveries ceased entirely two weeks prior.
Kassahun criticised federal authorities for not responding adequately to the crisis, noting that the lack of fuel has effectively paralysed agriculture and businesses.
"The authorities have turned a blind eye on us," he told Fortune. "We don't want to be politically targeted. We only want to continue rebuilding."
The fuel shortage has brought broader economic disruptions, impacting transportation, healthcare, and agriculture. The Tigray Chamber of Commerce & Sectoral Associations (TCCSA), representing over 30,000 businesses, has repeatedly urged regional and federal authorities to resolve the crisis.
Berihu Haftu, president of the Chamber, portrayed a grim reality for the region’s economy, which was already struggling from the recent two-year civil war.
"The economy of Tigray hasn’t recovered," he said. "Many local businesses are now on the brink of collapse."
One such business, Selam Tranite Plc, which has been in business since 2006 and employs over 250 people, has faced severe operational setbacks. According to its General Manager, Gebrewahd Asfaw, the company relies heavily on diesel. Its four buses and two trucks are inactive due to fuel shortages, forcing the company to scale down production drastically. Production dropped nearly threefold, reducing its ceramic output to 650Sqm a day.
"We're on the brink of closure," Gebrewahd told Fortune.
The company had secured a 105 million Br loan a few months before the war erupted in November 2020. Accumulating interest has since inflated their debt close to 200 million Br. Efforts to secure an additional 150 million Br loan remain pending, further complicating the company's financial predicament.
Despite the federal government's recent removal of fuel subsidies and pricing reforms targeting efficiency, Tigray State continues to face chronic shortages.
Last week, Trade Minister Kassahun Goffe (PhD) increased petrol prices to 112 Br a litre, nearly a 10pc rise. Diesel now costs 109 Br a litre. Influenced by global market pressures, currency depreciation, and subsidy removal, the hikes sparked sharp criticism from consumers across urban areas.
Federal authorities have recognised the concerns raised by Tigray State officials.
Tesfaye Abo, head of commodity price monitoring at MoTRI, confirmed they had received alarming reports about severe drops in benzene and diesel supplies. He disclosed that his office promptly communicated these concerns to the Petroleum & Energy Authority for immediate action. However, the Authority claimed it was unaware of the severity of the issue until recently.
According to Dibira Fufa, the Authority’s deputy general director, investigations began promptly after they received formal notice. Despite recognising the deficit, Dibira noted ongoing regulatory reviews to resolve the issue.
"We're working to deal with the shortage," he said.
The Authority's officials argue the fuel shortage is not exclusive to the Tigray Region but affects several regions nationwide. Technical disruptions at Djibouti's Doraleh Port terminals have exacerbated the crisis. A malfunction of pumping systems at Horizon Djibouti Terminals disrupted deliveries nationwide for several days, said Bekelech Kuma, the Authority’s communications director.
The terminal, which manages nearly 400,000Cbm of storage capacity. It has faced persistent disruptions since a major fire five months ago. Diesel shipments to Ethiopia have decreased dramatically from 10 million litres daily by about three million litres recently. Despite efforts by the Ethiopian Petroleum Supply Enterprise (EPSE) to maintain approximately eight million litres in national supply, ongoing technical failures have caused frequent interruptions.
The Enterprise, tasked with nationwide fuel distribution to approximately 1.5 million vehicles, acknowledged challenges in maintaining consistent supplies, especially diesel, essential for public transportation.
The impact on Tigray State’s agriculture sector has been particularly severe. More than 100,000 farmers depend on fuel-driven irrigation pumps, using four million litres monthly.
Desta Berhe, vice president of the Tigray Producers, Processors & Exporters Association, saw farmers' dire situation due to fuel shortages.
Farmers like Belay Gebreamlak, who grows onions, tomatoes, and fruits, have severely disrupted their livelihoods. Belay planned to harvest 50Qtls this year on his hectare farm but is unable to proceed without diesel for essential machinery.
"We're unable to continue this year," he lamented.
Belay also struggles financially, burdened by rental fees for a tractor that costs 10,000 Br a day, which was idle due to a lack of fuel.
Logistics and supply chain expert Zinabu Baye criticised the management failures in the fuel supply system. He called for well-defined response strategies, diversified import channels, and increased reserve inventories to prevent future disruptions.
"Logistical challenges cannot be overlooked given their consequential economic impact," he told Fortune. "The management of fuel is too sensitive an issue to neglect logistical problems."
Federal authorities maintain that ongoing reforms, including digitising fuel sales and reducing public subsidies, are essential to addressing inefficiencies. Nevertheless, the nationwide restructuring has heightened hardships for consumers, particularly in crisis-hit regions like Tigray State.
Fuel suppliers operating in Tigray voice frustration at unclear supply chain management.
Biniyam Aklog, deputy general manager of Yetebaberut, a supplier managing over 10 retail stations in Tigray said his company regularly placed orders with EPSE but still awaits deliveries.
"We've been fulfilling our part," he said.
Regional and federal authorities continue to wrestle with limited options to address the fuel crisis. Officials in Addis Abeba admitted prioritising fuel distribution to the capital and surrounding areas due to high industrial and transportation demands, further disadvantaging regional states.
𝗘𝗱𝗶𝘁𝗼𝗿𝘀' 𝗡𝗼𝘁𝗲: 𝗧𝗵𝗶𝘀 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗮𝗺𝗲𝗻𝗱𝗲𝗱 𝗳𝗿𝗼𝗺 𝗶𝘁𝘀 𝗼𝗿𝗶𝗴𝗶𝗻𝗮𝗹 𝗳𝗼𝗿𝗺 𝗼𝗻 𝗔𝗽𝗿𝗶𝗹 𝟭, 𝟮𝟬𝟮𝟱.
In the original we referred to Biniyam Aklog as the general manager of Yetebaberut. Biniyam is the deputy general manager. The general manager is Mengistu Demeke.
PUBLISHED ON
Mar 30, 2025 [ VOL
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