Fuel’s Small Profit Margin Creates Strain Between Private Sector, Government
Private investors involved in the sale and distribution of fuel know Ethiopia has the smallest profit margin on these goods in Africa – just 1Pct. As a result, investors shy away from the business, thereby contributing to imbalanced supply and demand, even as the number of vehicles in the country increases on a daily basis. To remedy this, the government has stepped in, announcing plans to build fuel stations throughout the capital. However, private sector insiders say they should work instead to improve the profit margin. EBR’s Ashenafi Endale spoke with key stakeholders to learn more about the debate and the growing tension between the public and private sector.