Ethiopia Faces Sharp Rises in Fuel and Fertilizer Costs

Ethiopia is experiencing significant economic pressure due to rising global commodity prices, specifically fuel and fertilizer. Regulated retail petrol prices have surged by 36.7 percent to 167.50 Birr per litre, while diesel has risen by 49.2 percent to 180.46 Birr per litre over the past year. Additionally, imported fertilizer costs have increased by up to 60 percent between August 2024 and February 2026. These hikes place considerable strain on the country's foreign exchange reserves and trade balance. As an oil-importing nation, Ethiopia lacks the revenue gains that oil-exporting economies enjoy, exacerbating the domestic fiscal challenges.