By Simegnish Yekoye

ADDIS ABABA, Ethiopia, March 14, 2008 – The Ethiopian government has announced that it had allocated an additional 75 million birr [~7.97 million USD; 1 USD = ~ 9.4 birr] to the Merchandise Whole Sale and Import Trade Enterprise (MEWIT) in an attempt to stabilize edible oil prices, which have been shooting up since February. The money is in addition to the regular budget the enterprise receives every year.

MEWIT, a government-owned enterprise that distributes merchandises to the public, says it is distributing one liter of oil for 16.40 birr [~1.74 USD], half the current price, and will also take action on other merchants who sell commodities at unfair prices. The price of oil since last month has more than doubled, reaching 34.00 birr [~3.6 USD] per liter.

"We have about 1 million liters of oil in stock, and we are purchasing another 1.5 million liters. This will help people get edible oil at fair prices, and will stabilize the market," said Yimam Mohammed, General Manager of MEWIT.

But, Yimam continues, if the demand of customers continues, MEWIT can purchase and distribute more palm oil.

The General Manager also says that MEWIT and the Ministry of Trade and Industry will ensure that wholesalers and merchants start to sell at a fair prices.

"We had discussion with oil factory owners and importers, and they have agreed to sell the oil with 16.75 birr per liter," Yimam says.

Following the action of the government to bring down the price of salt, which sky-rocketed last week up to 7 birr and more per kilo, MEWIT has started to sell one kilogram of salt at 1.35 birr. MEWIT used to sell salt at 0.75 cents per kilo; the increase to 1.35 birr is due to amplified transportation costs, according to Yimam.

In addition, MEWIT also distributes different types of soaps at lower prices than are found in the current market, from 1.35 to 4.15 birr according to the type of the soap.
Commodity prices have been shooting through the roof and urbanites in Ethiopia have been complaining louder and louder about the expensive cost of living, especially following the recent increase in petroleum prices.

Within the current budget year, MEWIT has purchased merchandises worth 167 million birr [~17.76 million USD] and sold products worth 215 million birr [22.87 million USD], using its 80 branches spread across the country.

Source: The Sub-Saharan Informer