Overview

This Proclamation establishes a comprehensive legal framework for regulating the marketing, supply, distribution, and retail of petroleum products in Ethiopia. It aims to create a modern, transparent, and efficient system that ensures quality, safety, and fair pricing while controlling illegal activities.

Key Takeaways

• Strong government control over fuel pricing and supply
• Emphasis on infrastructure (depots, stations) for distributors
• Focus on continuous fuel availability (24/7 service)
• Heavy regulation to prevent market abuse and quality issues

Key words

Petroleum Products Marketing, Certificate of Competence, Ethiopian Petroleum Supply Enterprise (EPSE), National Fuel Reserve, Depot System, Minimum 500,000 Liters Storage, Quality Control (Anti-Adulteration), Price Regulation, 24/7 Fuel Supply, Electronic Communication System, Fuel Adulteration (Prohibited), Inventory Tracking, petroleum products (including benzene, kerosene, diesel, jet fuel, lubricants), bio-fuel, blending, adulteration, storage, transportation, importers, distributors, fuel stations, direct users, end users

Main Provisions

Part One: General Provisions

• Short Title: Petroleum Products Marketing Proclamation No. 1363/2024
• Scope: Applies to petroleum marketing in Ethiopia, excluding exploration/development and military supply

Part Two: Obligations of Market Actors

Importers must:

• Prepare annual procurement plans based on national demand
• Ensure imported products meet international agreements and national quality standards
• Verify quality/quantity before loading and issue proper documentation
• Maintain daily loading data and submit reports to the Authority
• Sell price-regulated products at government-set rates
• Obtain and maintain a certificate of competence

Ethiopian Petroleum Supply Enterprise must store and manage national reserves and notify the Authority when supply is disrupted.

Distributors must:

• Maintain minimum storage capacity (500,000 liters) and fuel stations (4 initially, 10 total within 3 years)
• Refrain from adulteration
• Sell at regulated prices
• Submit monthly reports on inventory and distribution
• Monitor fuel stations under their operation

Fuel Stations must:

• Obtain certificates of competence for each station
• Have regular equipment inspections
• Accept products only from their contracted distributor
• Provide 24-hour uninterrupted service
• Maintain proper records

Carriers must:

• Have annual inspections and valid calibration certificates
• Transport only petroleum products
• Use permitted routes
• Install GPS tracking systems

Direct Users must obtain permits and use products only for approved purposes.

Part Three: Regulatory Bodies and Permits

Key Regulatory Principles

• Quality Control: Strict prohibition of fuel adulteration
• Price Regulation: Government sets prices for certain products
• Supply Security: National reserve system to handle shortages
• Transparency: Mandatory reporting and data tracking
• Licensing System: All actors must be certified

Ministry of Trade and Regional Integration has powers to:

• Conduct research and develop policies
• Oversee the petroleum marketing system
• Approve implementing directives

Petroleum and Energy Authority has powers to:

• Classify fuel stations by size
• Issue certificates of competence and construction permits
• Set annual supply ceilings
• Establish alternative marketing frameworks and control systems
• Take administrative measures against violators
• Charge service fees

Relevant Bodies (Regional) control transportation, distribution, and pricing compliance; collect data; and exchange information with the Authority.

Certificate of Competence:

• Valid for 3 years, renewable 2 months before expiry
• Non-transferable
• May be suspended or cancelled for violations

Construction Permit:

• Required for petroleum infrastructure
• Valid for 6 months to start; must complete within 18 months
• May be suspended or cancelled for non-compliance

Part Four: Miscellaneous Provisions

Digital Payment System:

• All market actors must use Authority-recognized digital payment systems
• Mandatory implementation of digital marketing systems

Informants: Individuals exposing illegal trade receive percentage-based rewards.

Administrative Measures:

• Written warnings for first-time record-keeping violations
• Suspension or cancellation of permits for repeated violations
• Business license cancellation for non-compliance within 6 months

Criminal Penalties:

• Unauthorized storage/selling: 3-5 years imprisonment + 350,000-500,000 Birr fine
• Adulteration: 5-7 years imprisonment + 350,000-500,000 Birr fine
• Price violations: First offense 350,000-500,000 Birr fine; repeat offenses 3-5 years imprisonment
• Tampering with meters: 3-7 years imprisonment + 350,000-500,000 Birr fine
• Smuggling: 5-10 years imprisonment + 400,000-700,000 Birr fine
• Juridical persons: 600,000-1,000,000 Birr fines
• Repeat offenders: Business closure for 5 years
• Obstruction of regulatory work: Up to 3 years imprisonment + 200,000-500,000 Birr fine

Transitional Provisions:

• Existing market actors must obtain certificates of competence within 6 months

Implementation:

• Council of Ministers may issue regulations
• Ministry may issue directives
• Repeals Proclamation No. 838/2014
• Effective on March 3, 2025