Gas station operators under TotalEnergies Ethiopia find themselves in precarious circumstances following a partnership deal the oil company has entered into with a coffee shop and tyre repair company. Formerly known as Total Ethiopia, the company pledged to lease space at its gas stations, making dealers furious over the lack of consultations before the decision.

TotalEnergies announced partnership arrangements with Tomoca Coffee and Sefa Tyre Services in May this year, deals that would see the two businesses move into select stations across the city.

The oil company has been one of the four pioneers entering the Ethiopian market in the 1950s. It acquired Mobil Oil in the mid-2000s, helping it consolidate with a market share of over 50pc. TotalEnergies runs half of the 150 gas stations operating under its brand in Ethiopia; the remaining half are owned by the dealers or properties under the Federal Housing Corporation.

Some dealers operating stations under TotalEnergies have resisted leasing space to Tomoca and Sefa, leading to bitters disputes. The company initially requested a few stations in the capital, such as on Ras Desta Damtew St. (near Harambe Hotel), Ras Birru Street (Mesqel Square), and Qera Bulgaria, to lease out spaces. Only the latter two obliged. The station near Harambe Hotel is no longer providing fuel services.

In March this year, TotalEnergies issued a month's notice to the dealer, Worku Getaneh, to vacate the cafe space. Signed by Mesfin Legesse, network manager, the company referred to the contractual agreement with the dealer and its legal right to terminate the contract about Café Bonjour, a brand TotalEnergies had been using in its stations. The management of TotalEnergies claimed, "modernising its stations to world-class standards." The dealer refused to hand over the space, arguing that the company did not consider the dealer's desire and commitment to modernising the cafe space.

Rebecca Iyob, the station manager, says the cafe is the primary source of revenues for the station, supporting a staff of 50. The dealer pays 90,000 Br in monthly fees to TotalEnergies, up from 30,000 Br a few years ago.

“We deserve to work on all services the station provides,” said Rebecca. “All services should be provided by one entity to ensure the standard.”

The station has discontinued providing fuel; Rebecca claims this happened after TotalEnergies suspended supply due to the disagreement. The station used to receive 5,000lt of benzene and diesel a day.

One of the stations that have agreed to lease out space to Tomoca was left with only fuel and oil services. During the handover process, the dealer gave up the oil shop to make room for the cafe.

“I had no choice but to stop the fuel service,” said the station owner, who requested anonymity for fear of reprisal.

The dealership was based on the agreement that he has to comply with the demands of the oil company, the dealer says.

Yohannes Woldegebriel, a law expert and former public prosecutor, is well aware of the contract agreements the oil company and dealers get themselves into. TotalEnergies, like all the other oil companies in the country, works based on contractual agreements drafted by one party, an agreement Yohannes described as "an adhesion contract."