The Ethiopian Minister of Trade and Regional Integration announced on Thursday that three fuel tankers bound for Ethiopia are currently stranded in the Arabian Gulf due to the closure of the Strait of Hormuz.
Iran closed the Strait in retaliation for a coordinated military campaign launched by the US and Israel on February 28, 2026. The repercussions of this conflict are now being felt as far away as Ethiopia.
According to a Ministry statement, the stranded ships are carrying 120,000 metric tons of white diesel and 60,000 metric tons of jet fuel. The closure has effectively cut off the 40 million barrels of fuel that previously entered the world market on a daily basis.
Ethiopia currently has an agreement with Kuwait to supply 60% of its white diesel and 100% of its jet fuel, while the remaining 40% of white diesel and other heavy oils are sourced through international bids.
However, the halt in Kuwaiti supplies has forced Ethiopia to make emergency purchases from alternative markets at significantly higher prices-$92.88 for white diesel and $86.33 for jet fuel.
The combination of the Strait’s closure and the government’s shift to spot markets has caused fuel prices to spike for the second time in a single month. The new prices introduced yesterday show an increase of up to 24 Birr per liter. White diesel has risen by 24 Birr to 163.09 Birr, while petrol(Benzene) increased by 10 Birr to 142.21 Birr.
The statement indicated that government subsidies have now surpassed 272 billion Birr. A task force has been established to monitor the crisis until it is resolved. In the meantime, the government is urging citizens to use fuel responsibly and has released a list of high-priority vehicles entitled to preferential supply.
