Parliamentarians incited fury over inefficiencies in fuel distribution and subsidy management, during the Ministry of Transport & Logistics performance report last week. Members of the Standing Committee for Urban Infrastructure & Transport Affairs questioned the effectiveness of penalties for misuse while illegal market activity persists.

Minister Alemu Sime revealed that the government spent 29.2 billion Br on fuel subsidies in the past nine months, while the total transaction volume reached 86 billion Br. Over 103,000 vehicles were banned from the program for improper use.

"We are conducting thorough audits," Alemu said.

He acknowledged difficulties in controlling the program and recovering funds from those who misused subsidies, particularly three-wheeled rickshaws and taxis.

"They're not serving the public with the arrangement," he said. "Regulating public transport providers is much easier."

The national Fuel Stabilisation Fund's spending has decreased due to the subsidy removal, aligning with the government's budget cutback goals. The Ministry has gradually eliminated fuel subsidies over the past three years. Currently, only 2,862 cars - primarily cross-country and public buses - remain subsidised. State Minister Denge Boru, confirmed plans to eliminate fuel subsidies altogether.

MPs raised concerns about removing subsidies while public transportation issues persist, with long queues for buses and taxis being a common sight. Meanwhile, stakeholders in the fuel supply chain identify a range of problems undermining legal channels.

Ephrem Tesfay, a board member of the Ethiopian Petroleum Dealer's Association, said tariff adjustments are necessary to make transportation profitable. He disclosed that there are instances of subsidised fuel being sold on the black market.

"Mandatory GPS installation is crucial," he said.

Other MPs echoed concerns about rising fuel costs and the potential benefits going only to the economically stable. Committee member Lubaba Abraham questioned how the Ministry plans to address black market activity when its digital payment system keeps failing. Another member Khalid Abamencha, expressed concern over the rising fuel costs while illegality remains unaddressed. He said uncontrolled subsidies benefited only a few people in the higher-income class.