Government has announced that it is preparing corrective measures to tackle the problems associated with the distribution of petroleum in the country.
Absence of sufficient petroleum stations attributable to the “low” profit margin gained by distributors and stations from the business as well as no chance to get a plot of land that will be utilized to construct stations are the first and foremost challenges.
The low profit margin from the sector discourages the participation of business persons into the investment.
Ethiopia hosts 710 thousand vehicles, whereas only 700 petroleum stations. The capital, Addis Abeba has 400 thousand vehicles accompanied by 100 stations.
The oil and gas sector in Ethiopia, currently at a very early stage of development, shows good potential for development on the long-run. The sector will benefit from strategies and policies to implement the broader vision for the sector. Development of the oil and gas sector in Ethiopia has the potential to transform the country’s economy, according to the World Bank.