The Ethiopian government has announced measures to gradually lift fuel subsidies, saying the huge sum of fuel subsidies, aimed at curbing the soaring cost of living, is hugely impacting the country’s economy, which necessitates urgent adjustments, local media reported.
The new fuel subsidy scheme will gradually see the complete lifting of fuel subsidies, state-run Ethiopian News Agency (ENA) quoted Gebremeskel Chala, Ethiopia’s Minister of Trade and Regional Integration, as saying late Tuesday.
Vehicles that will not benefit from the new package will be out of the government subsidy scheme within one year, subject to a quarterly price adjustment procedure, Chala said.
Public transport service providers, who are identified to benefit from the government’s subsidy package, will on the other hand continue to benefit from the package for the coming five years period, he said.
The ministry said amid the continued spike in the international oil price, the country currently bears a debt of 146.6 billion Ethiopian birr (2.8 billion U.S. dollars) from subsidies.