The law will enable Ethiopian Petroleum Supply Enterprise to be the lone importers and provider of benzene, diesel and kerosene
Ministry of Trade has joined together with Ministry of Mines, Petroleum and Natural Gas (MoMPNG) to study and adjust the profit margin for petroleum companies operating in Ethiopia. The profit margin of a company in fuel distribution is 8 cents per litre whereas fuel service station owners make 7 cents. The law will enable Ethiopian Petroleum Supply Enterprise to be the lone importers and provider of benzene, diesel and kerosene in the Ethiopian market.
MotumaMekassa, Minister for Mines, Petroleum and Natural Gas, commented there was a committee drawn from MoT and MoMPNG that is undertaking a study on the profit margin. “The committee will soon finalize the study and the required adjustment will be made based on the study,” Motuma said.
The main problem encountered by the distributors in Ethiopia is land scarcity. Investors and oil companies face a lot of challenges in securing land especially in Addis Ababa. JemalRedy, Addis Ababa City Administration Industry Development Bureau head said, “We have allocated land in the four corners of Addis Ababa in accordance with the traffic flow and demand of the public. We will make land available for fuel service station construction after we evaluate the investors’ proposals.” Source: Reporter PWKD17052017