Ethiopia hikes petrol prices
Ethiopia, which subsidises petrol, has raised
prices by more than five percent and public
transport fares accordingly, the government said
in a statement received by AFP on Saturday.
06 October, 2008
ADDIS ABABA (AFP) - Ethiopia, which subsidises petrol, has raised prices by more than five percent and public transport fares accordingly, the government said in a statement received by AFP on Saturday.
The ministry of trade and industry said it had hiked the price of regular petrol to 10.15 birr (0.75 euros or 1.05 dollars) per litre and that of kerosene to 8.59 birr (0.64 euros or 0.88 dollars).
Petrol pump prices had risen 20 percent in January to 9.61 birr (0.71 euros or 0.99 dollars).
The statement said the decision was made during a cabinet meeting on Friday when a report was submitted on the cost of fuel subsidies.
"The government has been subsidising fuel and during the past three years it spent more 7.7 billion birr ((574 million euros or 794 million dollars) in petroleum subsidies," it said.
The ministry of transport and communication simultaneously announced that public transport fares would rise.
Ethiopia, a poor and landlocked country of more than 80 million inhabitants, relies entirely on imports for oil.