Ethiopia Urges Fuel Cuts Amid Middle East Shock

Ethiopia is moving to contain a sharp rise in fuel prices triggered by disruptions in Middle East energy supply routes, combining emergency policy measures with public appeals for conservation as global instability feeds into domestic economic pressures.

Finance Minister Ahmed Shide described the surge as “alarming,” linking it directly to tensions in the Middle East and the closure of the Strait of Hormuz, a critical corridor for global oil transport. The disruption has constrained access to petroleum products for import-dependent economies such as Ethiopia.

Prime Minister Abiy Ahmed Ali issued a public appeal urging conservation and prioritization of essential use. Abiy said that due to the crisis in the Middle East, countries that rely on purchasing fuel are struggling to access it as needed.

Finance Minister Ahmed Shide added that until the situation stabilizes and normal fuel supply systems resume, fuel must be used sparingly and prioritized for essential needs, urging distributors, stations and consumers to act responsibly.

The government outlined a multi-pronged response: increasing fuel subsidies to cushion consumers, securing additional petroleum supplies to avoid shortages and launching enforcement operations against illegal fuel trade. Authorities said the crackdown would target unauthorized sales and pricing violations outside regulated channels.

Ethiopia’s full reliance on imported petroleum products makes it particularly vulnerable to global supply disruptions. The closure of Hormuz has tightened availability and driven price increases, forcing authorities to intervene to stabilize the domestic market.

Shide said the measures are designed to prevent a broader economic shock and ensure continuity of supply. Enforcement mechanisms will also be strengthened against companies and individuals violating fuel regulations.

Authorities said enforcement efforts will intensify to curb illegal trade, which tends to expand during supply shortages and price volatility. The crackdown aims to ensure equitable distribution and prevent market distortions.

The policy response also seeks to stabilize expectations in a volatile environment, as rising global fuel costs combine with domestic vulnerabilities. Officials emphasized that regulatory compliance will be key to maintaining access.

The measures come as international energy markets remain unsettled, with supply chain disruptions and transport constraints continuing to affect delivery timelines and pricing structures.