Ethiopia Forces Government Workers on Leave as Fuel Crisis Grips Nation
Addis Ababa, 31 March 2026
Ethiopia has mandated non-essential government staff to take annual leave as severe fuel shortages paralyse transport nationwide. The crisis stems from regional supply disruptions linked to Middle East tensions, with diesel queues stretching across cities. Over 3,000 employees at major state enterprises now work virtually whilst authorities battle widespread fuel smuggling that saw 613 arrests recently.
Emergency Measures Reshape Daily Operations
The fuel shortage has forced dramatic operational changes across Ethiopia’s public sector. The government has ordered public institutions and state-owned enterprises to place non-essential employees on annual leave to reduce transport demand [1]. Meanwhile, Ethio Engineering Group has instructed its over 3,000 employees to switch to virtual meetings, reduce vehicle movement, adopt transport pooling, limit official vehicle use to working days, and cut monthly fuel allocations for senior executives [1]. These measures represent the most comprehensive fuel conservation strategy implemented by Ethiopian authorities in recent years, directly affecting millions of workers and their families.
Diesel Scarcity Triggers Nationwide Queues
Fuel, particularly diesel, has become increasingly scarce, leading to long queues at filling stations in Addis Ababa and other cities [1]. Drivers across multiple regions of Ethiopia are facing severe diesel shortages, with long queues and limited supply affecting the Amhara, Oromia, and Tigray regions [1]. The crisis has created a two-tier system where informal payments determine access, as one driver in Addis Ababa explained: “If you don’t have the extra cash to bribe the pump attendant, your Telebirr balance means nothing” [1]. The situation has reached such severity that residents in Bishoftu express frustration at government priorities, with one stating: “They talk about electric cars while we can’t even find bread because the trucks that carry wheat have no diesel” [1].
Middle East Conflict Drives Regional Supply Disruption
The current fuel crisis stems from supply disruptions tied to escalating tensions involving the United States, Israel, and Iran [1]. The war has begun to reclassify the Gulf region in market eyes from a low-cost export basin to contested infrastructure [2]. This shift has profound implications beyond temporary price spikes, affecting whether pipelines, LNG trains, export terminals, tankers, and maritime corridors can still be treated as continuously operable systems [2]. Ethiopia’s exposure to Gulf instability involves multiple channels: petroleum imports, shipping and insurance costs, fertilizer availability, inflation transmission, and foreign-exchange pressure [2]. The International Monetary Fund warned on 19 March 2026 that prolonged energy price increases could raise inflation and lower global growth [2].
Corruption Crackdown Reveals Massive Fuel Smuggling
Ethiopia’s fuel crisis has been exacerbated by extensive smuggling operations that authorities have moved decisively to address. On 21 March 2026, Minister of Trade and Regional Integration Kassahun Gofe revealed that a nationwide crackdown led to the detention of 613 individuals and the seizure of over 448,000 litres of illicit fuel [1]. The scale of the illegal trade becomes apparent when examining recent allegations: between January and February 2026, authorities claim that over 2.600 billion Birr worth of fuel was sold through contraband channels, bypassing the mandatory Telebirr digital payment system [1]. A major corruption case is currently ongoing involving 14 senior suspects, including Ismela’alem Mihretu, CEO of the Ethiopian Petroleum Supply Enterprise, and Dibara Fufa, Deputy Director of the Petroleum Sector at the Ethiopian Petroleum and Energy Authority, related to the disappearance of 68 fuel tankers in July 2025 [1]. The crisis has historical precedent: as far back as November 2024, black market fuel prices in cities like Hawassa reached 170 Birr per litre [1], whilst in July 2025, the Tigray Trade and Export Agency reported that fuel supply to the region had dropped by up to 85 per cent over the previous two months [1].