The Tigray Interim Trade and Export Agency has called on federal authorities to urgently restore fuel supplies after deliveries to the region were halted entirely, Birrmetrics has learned.
In a formal letter to the Ministry of Trade and Regional Integration, the Petroleum and Energy Authority, and the Ethiopian Petroleum Supply Enterprise, the agency described the situation as dire and urgent.
Tigray has historically relied on a steady monthly supply of 12 to 15 million liters of fuel and diesel to sustain operations across public services and industry. The agency reports that deliveries began declining sharply in February 2025, dropping to just 850,000 liters by late 2025. Since January 2026, the supply has been entirely cut off, leaving the region without any fuel, according to the letter seen by Birrmetrics.
The suspension has reverberated across essential services. Hospitals, including the Mekelle Referral Hospital, are struggling to provide routine and emergency care. Utilities such as water, electricity, and telecommunications have faltered, and airport operations have been grounded. Humanitarian operations for internally displaced persons in various camps have been halted, while banking institutions and regional development projects face operational paralysis, further isolating the local economy.
Daniel Mekonnen, Commissioner of the Tigray Investment Commission, said the combined shortage of fuel and liquidity is forcing many businesses across the region to shut down.
“Since last year, factories have been suspending operations due to the shortage of fuel in the country, where power interruptions are already common,” he told Birrmetrics.
He said the liquidity crunch has compounded the disruption, leaving companies unable to meet payroll obligations. According to him, government employees in the region have not received salaries since January, after federal budget transfers were paused.
“Even I have not received my salary,” he said.
Banks in the city remain open but are operating on a limited basis, facilitating only digital transactions. Cash withdrawals are largely unavailable, with financial institutions unable to meet customers’ demand for physical currency.
The fuel shortage is also driving hyper-inflation, pushing the prices of basic goods and services sharply higher. The local fuel industry teeters on the brink of collapse, with roughly 93 gas stations at risk of closure, threatening thousands of jobs and leaving business owners burdened with debt.
In the letter, Gebremeskel Tareke, head of the Trade and Export Agency, said: “The complete cessation of fuel supply… is creating a severe socio-economic crisis and is an unfair decision aimed at the survival of the people.” The Interim Administration is urging an immediate resumption of fuel deliveries to avert further humanitarian and economic disaster.
Daniel said the commission has repeatedly raised the situation in the region with federal institutions at forums organised by the Ethiopian Investment Commission, urging immediate attention to the escalating economic strain.
“We have consistently presented the realities on the ground, yet there has been no tangible improvement,” he said.
Birrmetrics contacted relevant federal authorities seeking comment, but efforts to obtain a response were unsuccessful.