Ethiopian Petroleum Supply Enterprise (EPSE) CEO Esmelealem Mihretu was reportedly arrested by Federal Police on Monday March 10, according to multiple local media outlets, as the government simultaneously announced expanded fuel subsidies and a crackdown on illegal fuel trading.
The arrest is reportedly related to oil procurement processes and management of local oil supply storage, according to Borkena. Federal Police conducted a search of Mihretu's office but have not made a public announcement about the detention, Meseret Media reported. There is no information on whether he has appeared in court.
On Tuesday March 11, the Ministry of Finance announced fuel price increases: gasoline to 132.18 birr per liter (up 3 birr) and diesel to 139.84 birr per liter (up 10 birr), according to Xinhua.
Finance Minister Ahmed Shide said the government is expanding its subsidy program due to Middle East war disruptions affecting global oil markets. Without subsidies, gasoline would cost 205.74 birr per liter and diesel 238.13 birr per liter at current global prices, the ministry stated.
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The government also announced a crackdown on illegal fuel trading, targeting subsidized fuel being diverted and sold at higher prices, Addis Insight reported. Ethiopia spends more than $4.2 billion annually importing fuel, according to the Finance Minister.
EPSE, Ethiopia's sole petroleum product importer, generated 457 billion birr in revenue in the 2024/25 fiscal year, according to Birr Metrics. Under Mihretu's leadership, the company announced plans for a $150 million oil depot in Dire Dawa.
The developments come as Ethiopia grapples with global oil price volatility driven by tensions in the Strait of Hormuz. The fuel subsidy expansion reverses the government's previous policy of phasing out subsidies under its IMF-backed macroeconomic reform program. EPSE recently reported 208 billion birr in foreign exchange revaluation losses, according to the IMF's Fourth Review published in February 2026, with cost of sales exceeding revenue by approximately 39 billion birr in 2024/25.
