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Ride Transport Service has announced a price increase following the recent fuel and economic reforms. The service, which initially charged 100 Birr, has now increased to 130 Birr as of yesterday. Additionally, they stated that with the new price revision, there is also an increase of 1 Birr per kilometer.
This price change follows the Ministry of Trade and Regional Development’s announcement of adjustments to retail fuel prices, effective from October 9, 2024, at 06:00 a.m. The adjustments are part of broader macroeconomic reforms, including the restructuring of the foreign exchange management system implemented in July 2024. These reforms aim to improve business efficiency and address issues that have affected the sector for over three decades, such as transparency and free competition.
The government has kept fuel prices stable over the last two months through subsidies, spending over 35.8 billion Birr to prevent burdening consumers. However, officials note that fuel prices in Ethiopia remain significantly lower than in neighboring countries, which has led to smuggling and illegal trading activities. As a result, a phased approach to adjusting fuel prices has been adopted, with periodic increases planned over the next year.
The price of gasoline, for example, has risen from 82.60 Birr per liter to 91.14 Birr, with consumers covering 8.54 Birr of the increase while the government subsidizes 26.14 Birr. Similarly, the price of white diesel has risen to 90.28 Birr per liter, with consumers paying 6.54 Birr of the increase, and the government covering the rest.
In light of these developments, Ride Transport Service has adjusted its fares accordingly to cope with the rising costs. The government has committed to spending approximately 33 billion Birr on subsidies over the next three months, with the total cost potentially exceeding 100 billion Birr within the next year, depending on global oil price stability.
