Fuel prices in Ethiopia jumped today, with gasoline rising to 112.67 birr per liter, diesel and kerosene both reaching 107.93 birr, and jet fuel climbing to 113.20 birr, according to new rates effective immediately.

The increase is the latest in a series of adjustments as the government scales back fuel subsidies, pushing prices closer to market rates under mounting economic strain.

The new prices mark significant hikes from the last adjustment on January 7, 2025, which held steady through February: gasoline is up 11.20 birr from 101.47 birr (+11.03 percent), diesel and kerosene each up 8.95 birr from 98.98 birr (+9.04 percent), and jet fuel up 3.64 birr from 109.56 birr (+3.32 percent).

January’s change followed a partial subsidy rollback, leaving gasoline 15.81 birr below a projected unsubsidized rate of 117.28 birr per liter. Today’s price of 112.67 birr shrinks that gap to just 4.61 birr.

Diesel and kerosene, now identically priced at 107.93 birr, suggest a strategic alignment, possibly to simplify costs for household and industrial users. Jet fuel, peaking at 113.20 birr, saw the smallest rise, consistent with its niche market demands.

Ethiopia’s fuel subsidies, costing the government an estimated 100 billion birr annually, have historically kept prices well below regional benchmarks—such as Uganda’s 177 birr or Kenya’s 176 birr equivalents for petrol.

However, this latest hike shows a shift toward fiscal sustainability. Last week, Prime Minister Abiy Ahmed (PhD) told parliament the government had provided a subsidy of 28 to 30 birr per liter this fiscal year until March, at a cost of over 72 billion birr for the period. The new rates indicate a sharp reduction in that support.

The Ministry of Trade and Regional Integration has yet to comment, but analysts point to global oil price volatility and a weakening birr—pegged at roughly 126 per USD—as key drivers. At 0.89 US dollars per liter, gasoline is up from January’s 0.80 US dollars, yet still lags the global 1.26 US dollars average.