Fuel Authority Demands Stock Reports of Stations

Sep 23 , 2023


Fuel stations across the country are instructed to report the amount of stock in their inventory through a notice signed by Sahrela Abdulahi, director general of the Ethiopian Petroleum & Energy Authority. The letter dispatched two weeks ago aims to bolster the campaign of digitising fuel supply launched four months ago that instructed the stations to process all refills through mobile money transfers. Under the system empowered by state-owned Ethio telecom, the fuel supply chain is traced from the moment trucks in neighbouring Djibouti are filled by the Ethiopian Petroleum Supply Enterprise (EPSE) until they are funnelled to vehicles. While the plan to process all fuel payments through electronic transfers was initially kicked off in Addis Abeba, it has gotten traction nationwide over the subsequent months. Ephrem Tesfaye, a board member of the 500-member-strong Ethiopian Petroleum Dealer's Association (EPDA), said the new direction by the Authority is a positive turning point in the fuel supply chain of the country. Ephrem revealed that the association has been lobbying to put a system like this in place for the last four decades, hoping to seal the gap between demand and shipment orders. An average station stocks up on 250,000ltrs of fuel, enough supply for about four days in order to prevent disruption of service, according to Ephrem. The latest notice by the Authority entails revocation of fuel distribution licenses for stations that fail to comply with the reporting requirement.


Radar

Electricity Bills Get the VAT Jolt

The new Value Added Tax (VAT) has begun implementation on electricity consumption and various service fees affecting customers who use more than 200 kilowatt hours of electricity per month. Based on a directive from the Ministry of Finance, the tax will be applied to the excess amount of electricity consumption above 200 kilowatt hours. The Ethiopian Electric Utility (EEU) began implementing the VAT on bills starting from November though both prepaid and postpaid customers will have to pay V...


Radar

Gadaa Bank Expands Reach, Faces Lending Constraints

Gadaa Bank closed its first full fiscal year of operations with a net profit of 90.2 million Br. The 18-month-old Bank held its annual general assembly at Millenium Hall on Africa Avenue last week where the board announced that during the year, the Bank opened 15 branches and now has 85 operational branches. “Due to recently enacted policy measures on credit by NBE and unmet resource mobilization during the fiscal year, the Bank was unable to make loan disbursements,” stated Wolde...


Radar

Oromia Bank's Branch Expansion Weighs on Profits

Oromia Bank reported a 47pc decline in net profit to take in 840.9 million Br for the past fiscal year. Interest income grew by 21pc to reach 7.19 billion Br while personnel expense grew by 36pc to hit 3.16 billion Br. The opening of 72 new branches, bringing the total to 575, led to a four percent growth of deposits to 56.4 billion Br. The profits are “unsatisfactory against our ambitious moves,” said Assefa Seme (PhD), board chairperson. “The deviation is primarily attributed to our aggr...