E-Malt.com News article: Ethiopia: Heineken Ethiopia’s regional operations constrained by fuel supply issues

Heineken Ethiopia said fuel-related disruptions linked to global market pressures have begun affecting its operations outside Addis Ababa, constraining distribution and contributing to weaker regional performance, Birrmetrics reported on April 20.

The company’s managing director Bart De Keninck told Birrmetrics that the brewer introduced a new product to the Ethiopian market, Desperados, over the weekend, describing the launch as a signal that consumer activity in Addis Ababa remains resilient.

However, he said market conditions differ sharply across the country. “Outside of Addis Ababa, everything is standing still basically. So that has a big impact,” he said, citing fuel challenges that have reduced market activity in regional areas.

The comments come weeks after Birrmetrics reported that fuel shortages were affecting industrial supply chains, including brewing operations. In that report, an industry source said government fuel allocations had covered only about two-thirds of demand over a three-month period, forcing companies to scale back production in some regional facilities and rely on alternative arrangements to secure fuel.

“The real issue isn’t production right now, it’s getting the products across the country,” the source said at the time.

According to Bart, the beer industry has contracted significantly, with performance estimated at around 30 to 40 percent of normal levels.

“We try to be agile and flexible,” he said, adding that the brewer is exploring alternative last-mile distribution options for smaller towns, including the possible use of smaller transport modes such as bajaj and other low-capacity vehicles where appropriate.

He said the year had begun strongly for the company “until the fuel crisis came,” which he said disrupted logistics and slowed market momentum.

When asked about financial performance for the current fiscal year so far, he declined to provide figures.

Conflict around the Strait of Hormuz has repeatedly unsettled global oil markets, given that nearly one in every five barrels of seaborne crude passes through the route. Periodic escalations in regional tensions have contributed to price volatility, with Brent crude at times moving sharply depending on perceived risks to supply chains.

In Ethiopia, as in many countries, long queues at filling stations in Addis Ababa and regional towns have become increasingly common. The delays, however, extend beyond time lost in queues, affecting transport efficiency, logistics, and the cost of moving goods across the country.

The government has responded to fuel disruptions through a mix of rationing, prioritisation of key sectors, subsidies, and broader demand management measures aimed at stabilising supply.

Fuel subsidies remain a key policy tool. Diesel is currently heavily subsidised by an estimated 71 birr per litre, according to recent report from the Ministry of Trade and Regional Integration.

Overall fiscal estimates put total fuel subsidy support at around 272 billion birr.


20 April, 2026