Ethiopia hikes petroleum product prices

May 10, 2006 (ADDIS ABABA) — Ethiopia on Wednesday nearly doubled its subsidised price for gasoline and raised those of other petroleum products due to the global increase in oil prices.

The Ministry of Trade and Industry said the price of petroleum will increase from $0.48 per liter to $0.95, kerosene from $0.35 to $0.40 and white naphtha from $0.50 to $0.55.

“The price hike was made due to unprecedented global increase on the price of the product,” the Ministry said.

The price increase is effective for the three months starting on Wednesday.

The Ministry warned traders not to increase prices on consumer goods because the price hike was insignificant compared with the global prices of fuel.

“Any trader who is found to have increased prices on conumser goods will be prosecuted,” it said.

According to business sources, the government imported over 1.2 million metric tonnes of oil worth over $354 million for which the government paid $175 million in subsidies in 2004.

(Reuters)