Ethio Telecom, Ministry of Transport and Logistics and Ethiopian Petroleum Supply Enterprise (EPSE) have inked a deal that would enable fuel-subsidy beneficiary vehicles use mobile money platform to pay for fuel at gas stations.
Telebirr, a mobile money service, which has been developed by Ethio Telecom, will be used to pay the payment for subsidized fuel. And the deal has been signed on Monday at Ethiopian Skylight Hotel among Dagmawit Moges, Minister of Transport and Logistics, Frehiwot Tamiru, CEO of Ethio Telecom and Tadesse Hailemariam, CEO of EPSE.
Abdulber Shemsu, a Representative from the Ministry said that so far 164,345 vehicles, which are providing public transport services, are set to continue receiving fuel subsidies.
From the so far registered vehicles, 140,208 are registered in Telebirr, a mobile money service provided by Ethiopia telecom, according to Abdulber.
The subsidy will be provided based on the type of vehicles, kilometer the vehicles travel and sort of the fuel used.
Around 860 fuel stations identified and trained to give the service.
Mass transport service providers such as city and cross-country public transport buses, minibuses, and selected three wheel vehicles will be the beneficiaries of the subsidy program.
Federal transport authorities are expected to register 250,000 vehicles providing public transport services that are set to continue receiving fuel subsidies for five years.
All other vehicles will see subsidies lifted off next financial year, paying full price at pumping stations starting from July 8, 2022. Transport vehicles will receive a Personal Identification Number (PIN) code that allows them to pay at gas stations using Telebirr, where data on vehicles and their owners will be stored.