TAF Oil Plc, one of 28 oil retail companies, became the Ethiopian Oil Companies Association is fifth member on May 6, 2019.

The company, which joined the market in 2011, operates 72 service stations with 30 more in the pipeline.

The dynamism observed in the market encouraged the company to join the association, according to Hirago Felleke, general manager of TAF Oil.

"Being organised can help us come up with solutions to problems that arise in a constantly changing environment,” Hirago told Fortune.

The volatility of the international market, shortages of supply and illegal practices, like adulteration of the product, are among the challenges the industry faces, according to Hirago.

The Association was formed in August of 2017 with four of the largest players in the Ethiopian petroleum market including NOC, Total, Oil Libya and Yetebaberut Beherawi Petroleum. The four companies hold a 75pc share of the total petroleum market in the country and 92pc of the retail market share in the capital.

Protecting the interest of member companies, hosting interactive forums with several stakeholders in the industry, and creating a better communication in the industry is the primary aim of the Association, according to Girma Tadesse, secretary general of the Association.

"The Association is lobbying for the formation of the Petroleum & Petroleum Products Supply & Distribution Regulatory Authority," he said. “Different institutions were responsible for overseeing different segments of the business, and we called for centralised management."

The Ministry of Trade & Industry is in the process of forming a regulatory authority that will work on ensuring that petroleum and products supply chain are running smoothly and adequately. The Council of Ministers approved the draft proclamation for the establishment of the Authority and is awaiting legislation by parliament.

Currently, there are 28 operational oil companies with two more in the pipeline. These companies receive fuel from the Ethiopian Petroleum Supply Enterprise, which is the single state authority authorised to import refined oil into the country. The Enterprise then sells the product to the oil companies once it reaches the port of Djibouti through the oil companies’ representatives. Once sold, it is the responsibility of the oil companies to transport the fuel from Djibouti and distribute it to end users across the country.