Ethiopia Bans Gasoline and Diesel Vehicle Imports, Shifts to Electric Fleet

Ethiopia stopped allowing imports of gasoline and diesel vehicles in early 2024. The policy is paired with tax incentives for electric vehicles and plans for 17 assembly plants that will use components from China. Addis Ababa placed 100 new electric buses into service in 2025.

Bus driver Shashe Asemare said the vehicles produce no exhaust and operate more quietly than the gasoline models they replaced.

The government spent about €4 billion on fuel imports in 2023 and 2024. Conventional fuel prices have more than tripled since 2022, and officials cited global oil market instability as a reason to accelerate the transition. Ethiopia generates more than 96 percent of its electricity from hydropower.

Electric vehicles now make up more than 5 percent of Ethiopia's total registered fleet, matching the European Union share. The government aims to reach 500,000 electric vehicles by 2030. Taxi driver Abdurahman Ali said his monthly fuel costs fell from 40,000-50,000 birr to about 5,000 birr after switching to an electric Changan hatchback.

He and other drivers have called for additional public charging stations as the number of electric vehicles grows.