Addis Abeba — Prime Minister Abiy Ahmed (PhD) has announced a nationwide ban on the import of diesel-powered heavy vehicles, effective 2 October 2025, and revealed that about 2,000 buses operating in Addis Ababa and on inter-regional routes will be converted from fuel to gas this year.
“When these two thousand vehicles are converted, transport costs will decrease by at least 50 percent next year compared to the current price,” he said, adding that the measure will “greatly help the livelihoods of low-income citizens who commute for work in the city.”
The decision was unveiled on Thursday during the inauguration of the Ogaden Liquefied Natural Gas (LNG) Project in Kallub, Somali Regional State.
The LNG plant, which has a production capacity of 111 million liters per year, was officially inaugurated at the event, alongside the launch of its second phase. Once completed, the second phase is expected to produce 1.33 billion liters annually.
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“For citizens who have been importing large vehicles or trucks into Ethiopia, from today, just as the import of small non-electric vehicles has been restricted, the import of any fuel-powered truck into Ethiopia is prohibited,” the Prime Minister said in his address.
He noted that private investors importing gas-powered trucks will be eligible for government support, including duty-free incentives. “To reduce the significant expenditure we are incurring as a country, I appeal to the private sector to accelerate the country’s economic growth by importing gas-powered trucks from this day forward,” Abiy added.
The Prime Minister also announced that about 2,000 buses currently operating in Addis Abeba and on inter-regional routes will be converted from fuel to gas within the year. “When these two thousand vehicles are converted, transport costs will decrease by at least 50 percent next year compared to the current price,” he said, adding that the measure will “greatly help the livelihoods of low-income citizens who commute for work in the city.”
During the same visit, Abiy laid the foundation stone for two additional projects in Somali Regional State: a Urea Fertilizer Factory and an Oil Refinery Factory. In a statement posted on his social media account, he described the day as “a historic moment that makes all Ethiopians proud,” noting the launch of “two transformative projects.”
The Urea Fertilizer Factory will be built by Ethiopian Investment Holding (EIH) in collaboration with Nigeria’s Dangote Group. It will source gas from the Kallub gas field, transported through a 108-kilometer pipeline, with an annual production capacity of 3 million tonnes. The Gode Oil Refinery, to be constructed by China’s Golden Concord Group, will process crude oil from the Hilala oil field, with a capacity of 3.5 million tonnes per year.
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Highlighting the wider importance of the LNG project, Abiy said: “Above all, the project is not just for gas production. It will serve as a cornerstone for our food sovereignty efforts by providing a critical input for fertilizer production.”
