Ethiopia faces fuel shortages and rising prices due to Middle East conflict disrupting oil shipments, prompting emergency measures and a push toward electric vehicles.

Rising fuel costs in Ethiopia are worsening due to the Middle East conflict, which has nearly shut the Strait of Hormuz, a vital oil shipping route. Drivers report shortages and black market sales, especially in rural areas, pushing up transport and food prices. The government, calling the price surge "frightening," is increasing subsidies, buying fuel urgently, and releasing reserves to prevent shortages, while cracking down on illegal trading. Ethiopia, reliant on imported oil, faces higher shipping costs and delayed deliveries. To reduce dependence, the country has banned fossil fuel car imports since 2024 and lowered tariffs on electric vehicles, promoting a shift toward cleaner energy and greater resilience.