An agreement reached last week between Ethiopia and Sudan is set to reduce oil imports from many of Ethiopia’s fuel supplying countries, including the Middle East.
In the past five years, benzine supplies from Sudan has accounted for only 8 per cent of Ethiopia’s overall yearly demand. Most Ethiopian supplies of the fuel were mainly imported from the Middle East and other oil producing countries.
The new benzine supplying agreement signed between the two countries will see Sudan supplying 82 per cent of Ethiopia’s annual benzine consumption, said a top Ethiopian government official on condition of anonymity.
An agreement signed five years ago between Ethiopian Petroleum Enterprise, a state owned and sole importer of fuel, and Sudan Petrolatum, now Ethiopia’s sole benzine supplier, will expire this year.
But last week’s agreement between the two entities extends their cooperation for another year, while stipulating the increase in volume of Sudan’s supply to reach 82 per cent.
“After evaluating the latest agreement within the one year period, we will allow Sudan to fully supply Ethiopia’s benzine demand”, said the official.
Ethiopia has budgeted 19.2 billion Birr for fuel imports for the current fiscal year.