Leaders of an association representing fuel truckers say they have run out of patience waiting for the federal government to adjust fuel transportation tariffs, threatening to strike if their demands are not met in 10 days. Their actions, however, are not protected by the country's laws, experts warn.

Fuel trucks owners want to see an increase in transport fees paid for ferrying petroleum products from ports in Djibouti.

The Ethiopian Bulk Fuel Transport Owners' Association had its representatives meet at the Wabe Shebelle Hotel, on Ras Abebe Aregay Street, last week. They urged federal authorities to increase fees to 100,000 Br from the 75,000 Br set by the Ministry of Transport & Logistics in January 2021. They claim the fee was determined after a study the lobby group conducted a couple of months ago. The Ministry set the tariff at 120,000 Br for transport from Djibouti to Bahir Dar via the capital.

Around 60pc of the 1.3 million registered vehicles in the country operate in Addis Abeba, the destination for nearly two-thirds of all petroleum imports. Fuel is distributed through 41 oil companies and over 1,200 pumping stations.

The Association says the fuel transportation business, which can ferry up to 6.6 million tonnes annually, is valued at 20 billion Br. However, operational costs have disabled the industry, with prices for parts more than doubling over the past year. Its leaders have been pleading for a tariff adjustment since last September.

“The financial pressure is forcing us to stop what we love doing,” said Tsega Asamere, chairperson of the Association.

In January last year, an IVECO brand fuel truck was available for 5.2 million Br, a little over one million Birr cheaper than a Volvo truck's worth. The Chinese Sino Truck had a price tag of around 3.5 million Br. Prices have since grown by as much as 180pc.

Expenditures on tyres, of which the fuel trucks have up to two dozen, have also been arduous. In recent months, expensive brands from Europe and Japan have seen prices more than double to 54,000 Br apiece. Cheaper brands from China have seen similar spikes, retailing for around 35,000 Br. Higher quality tyres require changing after 80,000Km (approximately 45 round trips between Djibouti and the capital), 30,000Km less for low-quality tyres.

Fuel transporters are further incensed by the higher payments made to bulk dry cargo trucks for similar trips. They make an average of 120,000 Br for transporting goods from Djibouti to Addis Abeba, while the going rate is 166,000 Br from Djibouti to Bahir Dar through the capital. Tariffs for fuel transportation are tied to fuel prices and the price build-up calculated by experts at the Ministry of Trade & Regional Integration. They are heavily regulated and unlikely to change once set for a year.

Federal officials have been urged to review tariffs and make adjustments every year, according to Abayneh Kebede, a member of the board. He also serves in the government-formed committee set up to adjust the tariff.