Petroleum retailers hope to prompt officials at the Ministry of Trade & Regional Integration to increase their profit margin threefold with a study that identifies possible means underway by the Ethiopian Petroleum Dealers Association (EPDA).

They hope to gain a profit margin from 0.88 Br to around 2.50 Br a litre factoring in daily sales, transportation expenses, losses from evaporation and administration costs.

The 500-member-strong Association is comprised of owners from 1,590 fuel stations.

A board member Ephrem Tesfaye argues that profit margins have remained stagnant despite international prices soaring in the past few months. Meanwhile, he underscores the value of the local currency which keeps depreciating adds to the plight.

"We're trying to keep business afloat," he told Fortune.

Albeit the increase from 0.23 Br per litre to 0.88 Br last year, retailers are struggling to keep up with capital costs due to record-high inflation, according to Ephrem. He recommends adjusting the profit margins to create a competitive market and boost productivity through additional investors.

"It's a win-win," he said.

The study will factor in daily fuel output in a station ranging from 50,000ltr to 15,000ltr and use average overhead costs as it makes its way to the Petroleum & Energy Authority (PEA), which will pass it on to the Ministry.

However, the Fuel Products Market Stand Director at the Authority, Lemesa Tulu, indicated that a thorough investigation of the administrative expenses and weekly demand will be required before any recommendations are made.

"It can't be too painful to the end user," he said.

Consumers have been bearing the brunt of the pain from the inflation in international markets as a three per cent price hike to 77.65 Br a litre of Benzene and to 79.75 Br for Diesel was enacted by the Ministry three weeks ago. The price saw increments within a month span which have railed up the market.

Tesfaye Abo, commodities price study & monitoring head at the Ministry, suggests that only half the price of international increments was transferred to customers, with the Ministry carrying the rest.

"It's only a while before international prices move in tandem with local ones," he told Fortune.

A report by the International Energy Agency (IEA) indicates that global markets have been upset by the war between Russia and Ukraine with significant challenges faced as Russia is part of the Organization of Petroleum Exporting Countries (OPEC+).