Ethiopia’s Government Considers Berbera Port for Fuel Imports as Djibouti Depot Faces Capacity Declines

By: ADDISINSIGHT

The Ethiopian government is awaiting a decision regarding the importation of fuel through Berbera Port in Somaliland, a move prompted by ongoing issues with fuel distribution and service capacity at the Horizon Oil Storage Depot in Djibouti. The Horizon depot has seen a reduction in service capacity, leading to disruptions in the fuel supply chain within Ethiopia.

Ato Lemesa Tulu, director of oil products marketing research at the Oil and Energy Authority, highlighted that the diminished capacity of the Horizon depot has resulted in a shortfall in fuel availability. “The government doesn’t have a problem buying fuel,” Mr. Lemesa stated, adding that the Horizon depot has not undergone repairs since its establishment 18 years ago, contributing to its current limitations.

Ethiopia requires approximately ten million liters of diesel daily; however, shipments from Djibouti have decreased, with only eight million liters being released per day. Mr. Lemesa emphasized the necessity of exploring alternative ports to address this supply issue. He mentioned that research has been conducted to determine how much fuel can be imported through Djibouti, with recommendations to use Berbera Port for the remainder.

“Berbera Port has been identified as having adequate service facilities, and a recommendation to utilize this port has been submitted to the government for consideration,” he noted. Without a resolution to the challenges at Djibouti’s port, Mr. Lemesa warned that disruptions in fuel supply could persist into the next year.

In addition to the challenges in Djibouti, the Addis Ababa city administration has faced criticism for the slow replacement of gas stations demolished due to corridor development projects. Mr. Lemesa pointed out that the destruction of eight gas stations, including notable ones such as Bole Nok and Bole Brass Total, has left significant gaps in service throughout the city. He stated, “Gas stations are disappearing from downtown. For example, there is no station between Four and Six Kilos, and there is not a single station near the Piazza.”

The city’s fuel demand stands at 1.6 million liters per day, and the Oil and Energy Authority has been redistributing gasoline from the Sululta reserve depot to alleviate recent shortages. Getachew Amonwe, Director of Fuel Distribution at the authority, addressed the current fuel supply issues in a statement to ETV. He explained that while 1.6 million liters are being supplied daily, not all gas stations can receive equal distribution.

Getachew noted that the visible long lines at gas stations are exacerbated by drivers lining up to fill up their tanks even when they do not need fuel, driven by concerns over potential shortages. Currently, 120 gas stations are operating in Addis Ababa, servicing over 770,000 gasoline vehicles, with many stations facing operational limitations.

The Oil and Energy Authority continues to investigate the causes of fuel supply disruptions and is working to implement solutions to ensure a more consistent and reliable fuel supply for the city and surrounding areas.

SOURCE: ADDISINSIGHT