Ethiopian news update - 52 Members of Mediators to Mekelle
The average monthly freight on board (FOB) price of benzene in January was USD 69 per barrel, diesel USD 74 and jet fuel USD 73. In April, the price of a barrel of benzene was USD 20, diesel USD 24 and jet fuel was USD 15.
Tadesse said when the price of fuel hit bottom rock Ethiopia could not take an advantage as it does not have extra storage facility. “There was a time when the petroleum producers wanted to clear the stock because they run out of storage space. One day in March the price of a barrel of jet fuel was five dollars. Unfortunately, in Ethiopia we do not have jet fuel depot so we could not store jet fuel,” Tadesse said.
Ethiopia’s 12 depots have a total storage capacity of 420,000 m.cu of fuel. The main depot is located in Awash. “We have limited storage capacity so we could not buy and store fuel when the price was so low,” Tadesse said. Recently, EPSE dedicated the Sululta Fuel Depot only for benzene. The Sululta depot has the capacity to store 60,000 cu. m of fuel.
Ethiopia’s annual fuel consumption stands at four million metric tons and the government spends 2.9 billion dollars to purchase and import the petroleum products. Neighboring Sudan used to supply up to eighty percent of benzene but in recent years this has declined to only 20 percent. Kuwait Petroleum Corporation supplies 50 percent of the diesel demand, 75 percent of the jet fuel consumption. UAE’s Abu Dhabi National Oil Company (ADNOC) delivers 80 percent of the benzene consumption, 50 percent of the diesel and 25 percent of the jet fuel consumption.
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