Economy
Fuel Stations Restricted From Changing Distributors Without Contractual Clearance
BirrMetrics · 5 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The Ethiopian Petroleum and Energy Authority has ruled that fuel stations cannot switch distributors without obtaining contractual clearance from current suppliers or proving contractual violations.
- The Petroleum and Energy Authority issued a directive on October 21, 2026, barring fuel stations from changing distributors without clearance from current suppliers.
- Applications to change distributors or request clearance certificates will not be processed unless operators prove fulfillment of contractual obligations.
- Exceptions apply if operators submit documentary evidence showing wrongdoing or contractual violations by their current distributors.
- The regulation follows repeated complaints from fuel station operators unable to obtain supplies or clearance letters to switch suppliers.
- The Authority noted that many operators enter dealership contracts without fully examining terms regarding obligations, termination, and clearance.
- Filling stations in Ethiopia must operate with licenses and dealership agreements signed with authorized petroleum distribution companies.
- The decision cites Article 1731(1) of Ethiopia’s Civil Code on the binding nature of contracts and Article 5(19) of Petroleum Supply, Distribution and Monitoring Directive No. 1094/2017.
- The directive does not detail specific evidence required for exceptions or outline a separate dispute-resolution process for withheld clearance letters.
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