Fuel Prices Explode in Ethiopia: Kerosene and Jet Fuel Double in Just 30 Days

As reported by Addis Insight

Summary

• Ethiopia entered a new phase of energy price adjustment in early May 2026, with one of the sharpest monthly fuel price increases in recent memory. Kerosene and jet fuel prices more than doubled within 30 days. White diesel rose from 129.12 birr per liter in December 2025 to 180.46 birr in May 2026, an increase of about 40 percent.
• The shock follows the war that began on February 28, 2026, when the United States and Israel attacked Iran, leading Tehran to close the Strait of Hormuz, which carries about 20 percent of the world's oil. For Ethiopia, more than 180,000 metric tonnes of fuel failed to arrive, and daily diesel supply was cut from about 9.2 million litres to 4.5 million litres. The government has been spending up to $128 million a month on fuel subsidies and has signaled a gradual move away from large-scale subsidies to protect fiscal stability.
• For BirrValue users, higher fuel costs feed into transport and food prices, which adds to inflation and can weaken the birr's purchasing power. Fuel imports also consume foreign currency, tightening dollar supply at banks. To protect your money, compare rates on [BirrValue](/banks) and time larger conversions carefully.