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HomeNewsPetrol companies default on millions

Petrol companies default on millions

The , which is the only importer and distributer of petroleum products in Ethiopia, has charged three refined petroleum distribution companies for defaulting on their debts, Capital learned.
EPSE said the companies being prosecuted are Genet Petroleum, Erta-ale Oil Ethiopia and Bilen Petroleum. They are being charged with not paying 200 million birr. Other refined petroleum distribution companies are in danger of facing prosecution unless they pay their debts soon.
All three companies joined the industry as recently as 2015 and have around 20 stations.
Genet petroleum was established by a young couple in 2017 with a registered capital of 53 million birr, the company has already built a couple of gas stations in Addis Ababa and different regional towns at a cost of 700 million birr.
Since 2017, Genet petroleum has been an official partner to the Emirates National Oil Company (ENOC), a leading force in the economic diversification and sustainable development of the UAE.
In order to obtain an operating license from the Ministry of Trade, an operator should construct a 500,000 liter depot, and have a minimum of six filling stations required to get a license to operate as a petroleum retailer. There are 23 refined petroleum distribution companies operating in the country.
Out of the total distributors, four are major distributors including NOC, Oil Libya, Total and YBP, accounting over for 90pct of the nation’s fuel distribution. The remainder is covered by the other companies.
Ethiopians have been consuming more fuel meaning there is a need for more infrastructure including terminals, storage tanks, pipelines and related logistics. The enterprise procures petroleum from the international market through open international tenders.
According to EPSE estimates, the country would need 2,780,000 metric tons of gas-oil, 840,000 metric tons of jet-fuel, 494,000 metric tons of gasoline and 83,000 metric tons of fuel oil. The country’s total annual fuel demand in 2019 is estimated at 4,197,000 metric tons valued at 2.8 up to USD three billion.
Alemayehu Tegaye, Communication Director of EPSE told Capital that 50 percent of the gas-oil and 100 percent of the jet fuel would be supplied by the Kuwait Petroleum Corporation (KPC). Fifty percent of the gas-oil will be purchased from oil trading companies through an open international tender.
EPSE had planned to import 987,751 Metric Tons of refined petroleum products from July to September 2019. The performance report shows 932,057 Metric Tons of refined petroleum products have been imported during the period; indicating an accomplishment of 94percent of the supply plan. The payment settlement shows that above Birr 20.53 Billion have been paid for the petroleum product supplied in the period mentioned.
The Enterprise was originally the Ethiopian Petroleum Association Company in 1967, the organization has been known as EPSE since 2012 and was commissioned to supply sustainable refined petroleum products including gasoline, kerosene, light and heavy fuel oil in the country.

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