Fertiliser Push Runs into a Fuel Crunch

Apr 18 , 2026. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

The federal government has secured tens of millions of quintals of fertiliser despite a shortfall of planned procurement for the current fiscal year, with less than a million quintals still offshore.

But the concern among officials responsible for imports and distributions is no longer the headline figure of supply, but rather the constraints on moving fertilisers from ports and warehouses to farmers, as fuel shortages, high prices and poor prioritisation choke distribution at a critical point in the agricultural calendar.

Federal officials disclosed that the state has secured 2.1 million metric tonnes (short of 400,000tns bought) for this year and began transporting fertiliser early. State Minister for Agriculture Melese Mekonnen (PhD) is upbeat about the fertiliser distribution system, which he stated has been tested by shocks, including COVID-19, the Ukraine-Russia war, current Iran-Israel tensions, and internal conflicts in the north.

"Ethiopia is integrated into global markets," said Melese. "Such conditions create pressure."

According to the State Minister, reforms to the procurement system have shifted purchase timing, allowing the federal government to buy supplies when available at lower prices rather than waiting for peak global demand.

A macroeconomic team is overseeing the remaining procurement under the reformed system. The approach combines commercial purchases with government-to-government arrangements and continuing talks to manage the remaining portion. Of the planned purchase, 2.1 million tonnes were bought and transported into the country. Of the total amount procured, more than 860,000tns have been distributed to unions. Previous imports and domestic demand were between 1.5 million and 1.6 million tonnes.

"The government is working to resolve procurement and import problems for inputs in the short and long term," said Melese.

Officials view domestic fertiliser manufacturing as the long-term answer to import dependence, with a new company under development.

The State Minister disclosed that federal transport authorities are trying to coordinate fertiliser transport with other cargoes, using trucks and railway options to reduce pressure on roads. According to him, fertiliser is being moved by train where possible, and the Ministry of Transport & Logistics (MoTL) and maritime authorities are addressing port and corridor issues.

“We've escaped the full impact,” he told Fortune.

However, the pressure is evident in the Oromia Regional State, where stock has reached warehouses, but much of it has not reached farmers.

Gelana Eressa, the Regional State's director of Agricultural Input Supply & Credit Management for Cooperative Societies, stated that several trucks are struggling despite directives that prioritise fertiliser transport.

The Oromia Regional State is expected to distribute 7.5 million quintals of fertiliser that arrived this year and reached the warehouses of unions and cooperatives. The stock is distributed across about 62 cooperative unions, from which it is supposed to move to cooperative societies and then to kebeles. Of that stock, 880,318Qtls have already been distributed to farmers. But the remaining millions of quintals are still held within the 3,100 cooperatives due to fuel shortages.

A country spending close to four billion dollars annually to secure fuel is still facing empty stations in its largest urban market. Two weeks ago, 37 stations had no benzene or awaited delayed shipments, and 76 had no diesel at all, after half of the nine million litres daily supply were delivered to Addis Abeba. The shortages have left much of the capital’s network dry, translating global turbulence and domestic distribution problems into immediate and visible scarcity on city streets.

Officials blame a mix of external shocks and internal failures. The conflict in the Middle East, including early disruptions around the Strait of Hormuz and attacks on refineries in Qatar and the UAE, has unsettled supply routes on which Ethiopia depends, exposing the fragility of a fuel system already vulnerable to shortages. Federal transport authorities say they are pursuing emergency procurement and alternative logistics while continuing to absorb heavy subsidies to cushion consumers from the full cost of imported fuel.

Petrol sells at 142.21 Br a litre and diesel at 151.3 Br, though officials say full cost pass-through would push them above 174 Br and 234 Br, respectively.

Gelana sees the shortage as not limited to cooperative fleets but as part of a broader fuel problem affecting tender-based transport from ports into distribution centres across the Regional State. Although the Regional Agriculture Bureau is trying to facilitate movement and is discussing with trade authorities to prioritise fertiliser transport where fuel is available, the problem remains unresolved.

"Without enough fuel, it's difficult to move fertiliser from union warehouses to kebeles," he told Fortune.

That delay carries a high cost, for the fertiliser is imported with scarce foreign currency, subsidised by the federal government.

Federal subsidies for fertiliser have reached 84 billion Br this year, with support of 4,792 Br a quintal at farm gates. Before transport costs and subsidies, fertiliser is priced at 14,000 Br a quintal. According to Aman Reshid, head of the cooperative agency in the Central Ethiopia Regional State, even with imported stock secured and subsidised, the bottleneck has shifted to transport.

"As more fuel becomes available, fertiliser transport should be prioritised over less critical uses," Gelana told Fortune.

In the Central Ethiopia Regional State, the situation is different. Local agricultural officials planned to distribute 1.4 million quintals, of which around 700,000Qtls have already reached the kebele level.

"Most fertiliser for the Belg season has arrived and been distributed," said Aman, disclosing that half the Bureau’s plan has been supplied to farmers. "Because distribution continues until August, the remaining half will arrive in time."

Trucks deployed for fertiliser distribution are meant to receive priority. According to Aman, supply has continued without major fuel-related interruptions, though uncertainty remains.

For logistics and international trade specialist Sani Tuke, the fertiliser and fuel shortages are part of a wider global problem beyond the country’s control. He blamed geopolitical tensions, including the Iran-Israel/American war, as drivers of volatility.

International intervention is needed because a country like Ethiopia can't absorb such shocks on its own," Sani told Fortune.

However, he attributed problems with fuel and budget prioritisations to the shortages on the domestic front. He urged policymakers to dedicate fuel allocation models, such as gas stations reserved for public buses, and similar systems could be used for fertiliser logistics. The remaining 800,000tns yet to enter the country are small compared with the annual demand, reinforcing his view that the larger problem is distribution, not total supply.

"Agriculture should come first, followed by health, education and urban development, with resources aligned," he said. "Available fuel should be directed fully toward fertiliser transport. Failure to do so could reduce agricultural output and contribute to food shortages."

Sani called for higher subsidies of 5,000 Br to 10,000 Br and more state support for farmers, calling the moment a “survival stage.”

"Mobility and agricultural production are critical for rural and urban populations," Sani told Fortune.

PUBLISHED ON Apr 18,2026 [ VOL 27 , NO 1355]