The Ethiopian government has unveiled a new market share formula for fuel products, aimed at ensuring fair distribution across the country. The formula categorizes cities into five groups based on economic activity, population, and other relevant factors.
Under the new system:
- Category 1 includes the capital, Addis Ababa, and its surrounding cities of Gelan, Legetafo, Sululta, Burayu, and Sebeta.
- Category 2 covers major regional cities such as Bahir Dar, Dire Dawa, Hawassa, Mekelle, Gondar, Adama, Semera Logia, Dicheto, and Aisha.
- Category 3 consists of Bishoftu, Jimma, Shashemene, Dessie, Mojo, Kombolcha, Hara, Wolayta Sodo, Dewele, Awash Seven, and Gambella.
- Category 4 includes Debre Birhan, Arba Minch, Hosanna, Serdo, Bale Robe, Nekemte, Mizan Aman, Asela, Weliso, Asosa, Mile, Woldia, Ambo, Debre Markos, Debre Tabor, Butajra, Galafi, Welkite, Metahara, Warabe, Bonga, Wereta, and Enjibara.
- Categories 5, 6, and 7 cover zone and woreda-level towns with gas stations that are not included in the first four categories.
Officials emphasized that the new system is designed to address distribution challenges and improve public access to fuel rather than preventing shortages. It aims to separate companies’ market shares to create a fairer allocation process.
Currently, around 60 companies are engaged in fuel distribution across Ethiopia. The implementation of the new formula will follow a planned, agreed-upon schedule. Authorities expect this approach to improve fairness in the sector and reduce competition-related conflicts among fuel distributors.
