The Ministry of Trade and Regional Integration (MoTRI) announced Tuesday that the government will gradually lift fuel subsidy for individual and some organizations vehicles.
Only mass public transport service providers will be the beneficiaries of the new subsidy scheme adjusted by the government, Gebremeskel Chala, Minister of Trade and Regional Integration, said in a press conference on Tuesday.
The beneficiaries will receive the subsidy for five years. The government has predicted that the market will gradually be more of a free market economy in the upcoming five years, according to Gebremeskel.
“The government will subsidize those who will not be beneficiaries of the subsidy only for a year,” he said, adding, “In every three months the government will cease subsidizing some of those who will be part of the subsidy scheme.”
Until the subsidy lifted fully however, the government will subsidize from 25 to 75% of their expenses, he said.
“Therefore, over 1 million vehicles of private organizations, embassies and other international organizations will gradually be exempted from the subsidy,” Gebremeskel said.
The government has invested 146.6 billion Birr to subsidize a fluctuating global fuel price, he said.
Meanwhile, MoTRI announced Tuesday that it has revised the retail prices of petroleum products.
Effective July 6, 2022, 2022 to a liter of Benzene will cost 47.83 Birr at gas stations, up from 36.87 Birr.
The cost of light diesel oil has soared by 38 percent during the same period, reaching 49.02 Birr a liter from 35.43 Birr.