Fuel Subsidy Revision Pushes Down Monthly Gov’t Loss from 10 to 4 Billion Birr

The revision made on fuel subsidy by the government has reduced its monthly loss from 10 billion to 4 billion Birr, Petroleum and Energy Authority disclosed.

Authority Director-General, Sahrelah Abdulahi told ENA that the revision carried out three months ago on fuel subsidy on targeted transport sectors has reduced monthly expenses of the government from 10 billion Birr to 4 billion Birr.

The debt or loss due to fuel subsidy has so far reached 171 billion Birr, she said, adding that the measures being taken would however gradually ease the debt.

According to Director General, the nation has also secured 5 billion Birr over the past three months from value added tax levied on fuel stations.

The Government of Ethiopia is going to enact policy incentives to allow the import of electric vehicles with a view to reducing the huge foreign currency expenses to purchase fuel, the director-general stated.

The government is still subsidizing fuel as per the international fuel market price since the price of fuel in the country would have been Birr 81 for naphtha and Birr 66 for benzine per liter if the country applies the current international market.

Source: Ethiopia News Agency