Ethiopia increases ethanol-fuel blend to stave off rising costs

by yeEthiopiaforums

APA-Addis Ababa (Ethiopia) Ethiopia increases on Tuesday the amount of ethanol blending with fuel from 5 to 10 per cent to tackle rising fuel cost, APA can confirm.

Ethiopia spends around $ 1.1 billion annually to import fuel for its consumption.

The ongoing political instability in Libya and other Arab countries was already affecting the price of fuel which leaves countries such as Ethiopia on the brink of serious shortages.


The Ethiopian Ministry of Trade said that the increase in the amount of ethanol blending with fuel will help the country minimize the country’s expenditure on oil imports. The ministry indicated that the price of ethanol blended with fuel will decrease by 45 cent per litre as of March 16, 2011 following an increase from 5 to 10 per cent.fuel gas-shortage


The price of ethanol blended with fuel currently sells for 17.88 Birr, which is equivalent to around $1 and five cents.


It was the first time fuel prices in Ethiopia have reached more than a dollar, causing an increase in transportation and other commodity costs.

According to information from the ministry, since 2008, the nation has saved over $10 million by blending nearly 13 million litre of ethanol with over 245.2 million litres of benzene.


“Efficient consumption of fuel and dependence on local sources of energy has become the main strategy of the country to ensure sustainable development” a ministry statement said.


Ethiopia’s Fincha Suger factory has been producing eight million litres of ethanol in the past two years while the Metehara Sugar factory is also striving to produce 10 million litres in this budgetary year.

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