Oil prices rise and inflation in ethiopia

The price of petroleum products in Ethiopia has improved since December 1, 2014. The improvements cost up to five birr per liter, and the Et...

The price of petroleum products in Ethiopia has improved since December 1, 2014. The improvements cost up to five birr per liter, and the Ethiopian government's price for petroleum products is relatively low compared to other neighboring countries.

He said the sale of petroleum products in Ethiopia was relatively small compared to other government subsidies, adding that the government was covering 75 percent of Ethiopia's oil expenditure.

However, following the rise in world oil prices, the rise in oil prices, which has led to a rise in tariffs in the transport sector, is feared to be another direct cause of current inflation in Ethiopia.
Economists say the new tariffs are expected to reduce government spending, coupled with rising global oil prices and the current situation in Ethiopia.

Experts say the ongoing war in northern Ethiopia has hurt the Ethiopian economy. Experts say the economy is struggling to cope with rising inflation and war. This morning, Mershe Tiruneh spoke to experts about the impact of rising oil prices on inflation.

The Ethiopian government has the power to supply and sell oil prices, and to review the price of petroleum products on a monthly basis. It is worth noting that the price of fuel is revised monthly, but most of the time, non-jet fuel products remain stable.

Last December, the Ministry of Trade and Regional Cooperation announced a new price adjustment for petroleum products. In line with the new price adjustment of petroleum products, it was decided to increase the price of petrol by 31 birr per liter and 74 cents per liter.

I was also told to sell white diesel for 28 birr and 94 cents, white gas for 28 birr and 94 cents, light black diesel for 23 birr and 73 cents, heavy black oil for 23 birr and 29 cents, and jet fuel for 58 birr and 77 cents. Gas stations have been selling at a new price since the price hike.

It is said that the increase in the price of petroleum products is due to the fact that the price of petroleum products has fallen sharply due to the increase in the price of international petroleum products.
It was also stated that the improvement was due to the fact that the domestic retail price was up to 100 percent compared to the retail prices of neighboring countries, and that the product was highly vulnerable to smuggling, and that it was necessary to revise the retail price of petroleum products given Ethiopia's current situation.

The selling price of petroleum products in December 2014 was followed by a January 2013 hike, which is up to five birr more than the January 2013 hike.
Compared to the current selling price per liter in January 2013, gasoline ranged from 25 birr to 82 cents to 32 birr to 74 cents, white diesel from 23 to 04 cents to 28 birr to 94 cents, light black diesel from 20 to 27 cents to 23 birr to 73 cents, heavy black. Diesel has risen from 19 birr to 77 cents to 23 birr to 29 cents, and jet fuel from 35 birr to 12 cents to 58 birr to 77 cents.

The Addis Ababa Transport Bureau said in a statement on Friday that it has made some tariffs for public transport services following the increase in sales prices for petroleum products. According to economists, the tariff increase will increase the price of other freight and public transport services, directly or indirectly.

According to Dr. Degefu, a researcher at the Ethiopian Institute for Policy Studies, the direct or indirect increase in the price of petroleum products, directly or indirectly, will be another factor in the rise in inflation.

"The rise in oil prices is a major cause of inflation," he said, noting that while the government has reduced the pressure on inflation in light of the current situation, its negative effects are not small.
Inflation in the Ethiopian market is on the rise, according to the Ethiopian Statistics Service's monthly report. Inflation in Ethiopia is becoming more and more common as prices rise for one product.

Economists, who spoke on condition of anonymity because they were not authorized to speak on condition of anonymity, said inflation in Ethiopia was due to inflation. They point to the fact that even in the past, even products that have not been directly or indirectly linked to the dollar have been the cause of inflation.

According to the expert, the increase in the price of petroleum products will directly or indirectly affect the prices of goods and services that will be sold.

It is to be recalled that although the market price of petroleum products is low compared to other countries, the government will sell imported oil at a loss to prevent inflation and stabilize the market.
One year ago, the recent rise in oil prices led to a review in January 2013 of the current fiscal year. Despite the government's increase in tariffs following the price hike, a new morning reported that consumers were forced to pay more than double the tariff due to the strike, which was called "unfair."

The government said in January 2013 that the rise in oil prices had followed a sharp rise in world oil prices. Despite the increase in oil prices since April 2011, the government has said it will spend 24.05 billion birr by January 2013 to cover the increase.

According to the amendment, the government has covered 75 percent of the world's oil prices and will cover the remaining 25 percent.

According to four quarterly reports released by the National Bank of Ethiopia (NBE) in 2013, Ethiopia spent 72.6 billion birr on oil imports during the fiscal year.

In the first quarter of the year, the country imported 878.7 thousand metric tons of petroleum products and earned 12.8 billion birr. In the second quarter, it imported 937.9 thousand metric tons, imported 14.7 billion birr, imported 960,000 metric tons in the third quarter, and imported 943.1 thousand metric tons of petroleum products in the fourth quarter.

According to a report by the National Bank of Ethiopia (NBE), Ethiopia's expenditure on oil imports is growing. For example, in the fourth quarter, imports fell 16.9,000 metric tons compared to the third quarter, but the price increased.

Amid rising inflation in Ethiopia, rising oil prices are already a major concern.
According to a recent report by the Ethiopian Statistics Service, the inflation rate has increased by 33 percent compared to the same period last year. Food inflation last November increased by 38.9 percent compared to the same period last year.

Compared to October, prices for grain, vegetables, and grains fell sharply. Rice, teff, wheat, barley, maize, sorghum, beans, peas, lentils and lentils are said to have declined slightly. They also reduced meat, milk, cheese and eggs, and spices (mainly salt and pepper).

Vegetable oil and butter have declined slightly, while prices for coffee and soft drinks have risen. On the other hand, inflation of non-food items index rose by 25.2 percent compared to the same period last year.
Non-food grade index inflation is one of the main causes of inflation compared to the same period last year, especially in alcohol and tobacco, clothing and footwear, khat, home care and energy, and furniture (rent, cement, roofing). It is said to have seen an increase in the price of tin, furniture and home furnishings, medicine and jewelry.

Overall inflation fell by 0.6 percent compared to October 2014 and the food index fell by 1.7 percent. At the same time, non-food inflation rose by 1.0 percentage points. After hitting 34.2 percent last month, annual inflation fell to 33 percent in November 2014.

In November 2014, monthly food inflation fell by 1.8 percent compared to the same period last year, while non-food inflation rose 1.0 percent. According to the Ethiopian Statistics Service, food prices are expected to decline in the next three months due to the long-term seasonal inflation trend.

However, there are indications that rising food prices, which are expected to fall in the next three months, could be hampered by rising oil prices. An economist who spoke to Addis Ababa this morning said that the rise in the price of petroleum products will lead to an increase in food prices from rural to urban areas.

He said the government's recent rise in oil prices is unacceptable in light of Ethiopia's current situation, adding that it will increase the government's spending on oil to cover the current situation.

In light of current trends, however, there is a risk that rising oil prices will further fuel inflation. He noted that the recent rise in oil prices could be a factor in the current situation.

The economic analyst, for his part, said the rise in prices of other commodities due to rising prices in Ethiopia is likely to rise. He said the increase in the price of petroleum products, in particular, will lead to an increase in prices, especially for food products.

If Ethiopia's inflation continues to rise, the effects of the war on the war-torn economy will be even greater, according to the Institute for Policy Studies researcher.

What can be done to prevent inflation?
According to both experts, the rise in silver prices is one of the reasons for the rising inflation in Ethiopia.
Economists point out that inflation in Ethiopia, in addition to rising silver prices, is also a contributing factor to the mismatch between supply and demand and rising commodity prices. They point out that rising oil prices could exacerbate the problem.

According to the researcher, the rise in oil prices is not to blame for the fact that the Ethiopian economy is struggling to cope with the current crisis. Both experts agree that in the current context, the government cannot afford to increase oil expenditures.

However, experts say that the increase in the price of petroleum products, coupled with the current situation, needs to be closely monitored so as not to exacerbate inflation.

The economic analyst added that the increase in prices of services and products related to the rise in oil prices should be closely monitored by regulators to prevent them from escalating into unrelated products.
In addition to controlling unnecessary inflation, it has also been suggested that a system may even be put in place to develop new regulatory systems and to control the improper distribution of silver.