Ethiopia to Enact Stricter Regulation on Petroleum Industry

March 9th, 2012 | by addis portal |

The Ministry of Water and Energy is preparing a draft proclamation to properly regulate the petroleum industry in Ethiopia according to Wendimu Tekle, State Minister for Water and Energy.

The Ministry is required to assure that the supply of petroleum products and related services, in Ethiopia is up to international standards said Wendimu.

The ministry is also committed to eliminating the current practice of adulterating petrol and diesel with kerosene which seems to be increasing at a significant rate he noted.

Kerosene is tax-exempted to support low income people who use it as fuel and to combat deforestation. The price gap between kerosene and petrol and diesel, however has meant the adulteration of petrol and diesel with kerosene offers a substantial profit margin according to Yigzaw Mekonnen, researcher.

The adulteration of petrol and diesel with kerosene lowers the quality of fuel and results in low engine performance, higher emissions, higher maintenance costs and various health related consequences noted Yigzaw.

The government is losing revenue in the millions due to this process claimed representatives of the MoWE at a workshop organized for petroleum down stream operators last week.

The ministry discovered in a study conducted last year that nearly half of the filling stations in Addis Ababa are selling adulterated petrol and diesel claimed an official.

Officials with various petroleum distributors suggested that the adoption of dye markers and the possible lifting of the tax exemption in effect for kerosene to counteract the problem.

Source: Ethiopian Press Agency 

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