The Ethiopian government is awaiting a decision regarding the importation of fuel through Berbera Port in Somaliland, a move prompted by ongoing issues with fuel distribution and service capacity at the Horizon Oil Storage Depot in Djibouti. The Horizon depot has seen a reduction in service capacity, leading to disruptions in the fuel supply chain within Ethiopia.
Ato Lemesa Tulu, director of oil products marketing research at the Oil and Energy Authority, highlighted that the diminished capacity of the Horizon depot has resulted in a shortfall in fuel availability. “The government doesn’t have a problem buying fuel,” Mr. Lemesa stated, adding that the Horizon depot has not undergone repairs since its establishment 18 years ago, contributing to its current limitations.
Ethiopia requires approximately ten million liters of diesel daily; however, shipments from Djibouti have decreased, with only eight million liters being released per day. Mr. Lemesa emphasized the necessity of exploring alternative ports to address this supply issue. He mentioned that research has been conducted to determine how much fuel can be imported through Djibouti, with recommendations to use Berbera Port for the remainder.
“Berbera Port has been identified as having adequate service facilities, and a recommendation to utilize this port has been submitted to the government for consideration,” he noted. Without a resolution to the challenges at Djibouti’s port, Mr. Lemesa warned that disruptions in fuel supply could persist into the next year.
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