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The House of Peoples’ Representatives has approved a draft proclamation aimed at regulating the trade of petroleum products in Ethiopia. The report, presented by the Standing Committee on Trade and Tourism Affairs, was reviewed and passed with two votes in favor and one against.
During the session, Sahrela Abdulahi, Director General of the Petroleum and Energy Authority, stated, “Ethiopia has the fewest gas stations per capita in East Africa.”
She attributed the shortage to justice-related challenges, such as disputes over land allocation and delays in regulatory approvals, which have hindered the construction of new gas stations. She also pointed out that existing stations are disproportionately located in areas with little economic activity, further aggravating the problem.
“This imbalance not only limits access to fuel in high-demand regions but also disrupts supply chains, affecting vital sectors like transportation and agriculture,” the spokesperson added.
The legislation aims to combat smuggling, hoarding, and fuel adulteration—issues that have long disrupted Ethiopia’s petroleum sector. Sahrela stressed the urgency of reform, noting that nearly 500 woredas across the country lack a single gas station, leaving many communities underserved.
The newly approved proclamation also introduces stringent penalties for violations in the petroleum trading sector. Among its key provisions, individuals repeatedly trading petroleum products outside government-set prices or mixing them with foreign substances will face imprisonment for three to five years and fines ranging from 300,000 to 500,000 birr.
Additionally, those storing petroleum products outside authorized locations, selling them outside designated areas, or using unsafe containers will have their products confiscated. These offenders will also face imprisonment for up to three years and fines between 350,000 and 500,000 birr.
