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RUEHDJ/AMEMBASSY DJIBOUTI 2862
RUEHKH/AMEMBASSY KHARTOUM 0147
RUEHLO/AMEMBASSY LONDON 1219
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C O N F I D E N T I A L ASMARA 000804 
 
SIPDIS 
 
SIPDIS 
 
LONDON, PARIS FOR AFRICA WATCHERS 
 
E.O. 12958: DECL: 10/06/2016 
TAGS: PGOV ECON EPET ER
SUBJECT: PETROL, DIESEL AND COOKING GAS: HOT COMMODITIES IN 
ERITREA THESE DAYS 
 
 
Classified By: AMB Scott H. DeLisi, for reasons 1.4 (b) 
and (d) 
 
 ¶1. (U) Summary: Lines snaked through petrol stations over 
the weekend of September 30, as word of gasoline 
shortages spread.  The mothers of Asmara, who have been 
increasingly reliant on kerosene for cooking, feared it 
might be the next fuel to disappear and rushed to stock 
up, adding to the fuel "panic."    Fuels - gasoline, 
diesel and kerosene - all require the expenditure of 
Eritrea's scarce foreign currency.  We anticipate that 
the GSE, which continues to exercise strict control over 
the economy, will shift resources to ensure a steady 
trickle of these fuels, although perhaps not all at the 
same time.  Recent changes to diesel distribution and the 
choice by the GSE to temporarily stop the transport of 
gasoline from Sudan to Eritrea all add to the on-going 
fuel problems in Eritrea.  Furthermore, with no private 
sector supply alternatives to the GSE's fuel 
distribution, fuel problems for the population are likely 
to continue. End Summary. 
 
¶2. (U) For the past few months the propane supply, the 
primary gas used for cooking in the urban areas, has been 
nearly non-existent.  As a result, Asmarinos have 
resorted to using kerosene for cooking.   Recent 
shortages in gasoline fueled a panic that kerosene will 
be the next to drop off the list of available fuel and 
thus created a run on the limited market.  Gasoline 
reportedly will become available again between October 6 
and 8. 
 
¶3.  (U) The shortage of propane began several months ago 
forcing many restaurants to close for several days at a 
time.  Until recently, diplomats had been able to get 
propane, although only by formal request to the Ministry 
of Foreign Affairs.  (In one instance, the Embassy had to 
provide a restaurant owner with a letter that enabled him 
to procure cooking gas to cater a representational 
event.)  On October 3, a staff member of the European 
Commission (EC) told Poloff the GSE had informed them 
that the EC would no longer receive their supply either. 
 
¶4. (C) On the diesel front, the GSE transferred the 
control of diesel fuel from the Petroleum Corporation of 
Eritrea to the Ministry of Defense in late August but 
offered no public comment on the reasons for the 
transfer.  Following this development, Embassy Asmara, 
the UN, and various other foreign missions received 
letters indicating that their diesel allotment would be 
restricted.  For some, such as the European Commission, 
the new allotment represented nearly a 50 percent cut 
from their previous one.  The United Nations Mission in 
Ethiopia and Eritrea (UNMEE) ration was also cut, by 
almost 40 percent. The SRSG told Ambassador that he was 
concerned that the cuts would severly constrain UNMEE 
operations though others in UNMEE were not as concerned. 
(Comment: While the Embassy also received a reduced 
allotment, the amount is sufficient for business needs 
under current power availability, described septel.  End 
Comment.) 
 
¶5.  (U) For locals, diesel is now available for purchase 
only with ration coupons.  Residents must justify the 
need for diesel when applying for these coupons, for 
example by proving a business need or a special event 
like a wedding, which are then issued through the local 
municipality.  In practice, the reduced diesel supply has 
only minimally affected the small percentage of 
individuals driving privately owned vehicles.  Of much 
greater impact to local residents has been adjustments in 
public transportation.  This weekend, the two public bus 
systems (and only bus lines) suddenly saw a 40% reduction 
in service in the greater Asmara area. In typical 
Eritrean fashion, the GSE-controlled media reported on 
the cuts only after people waited during the weekend for 
busses that never arrived.  The media reassured the 
public that this reduction in services would allow the 
bus companies to "implement major development programs" 
and to "help achieve goals". 
¶6. (C) In a meeting on September 29 with Emboffs, Ahferom 
Tesfagabir, the General Manager of Total Oil(formerly 
Mobil), confessed to the complete absence of petrol in 
Eritrea.  He said that Total Oil had provided diesel fuel 
to the GSE for a tanker to travel from Massawa to Port 
Sudan to receive a supply of gasoline.  For some reason 
unknown to him, the tanker had not yet departed Massawa. 
He speculated that the reason might be political, given 
the exchange of harsh words during the week between 
Sudanese President Bashir and the GSE about Darfur and 
Sudan's internal stability.  According to Ahferom, upon 
transferring control of diesel to the Ministry of Defense 
the GSE immediately charged it with the task of 
significantly reducing diesel consumption. He further 
noted that the on-going issues with the fuel supply are 
all related to the Eritrea's continuing trouble in 
obtaining hard currency. 
 
¶7. (SBU) Comment:  The lack of gasoline for the past few 
days has not had major impact - so far.  However, should 
the problem continue and should kerosene stockpiling by 
individuals lead to GSE restrictions, the rural 
communities would most likely feel the pressure first. 
They are heavily dependent on kerosene for cooking, since 
harvesting wood (unless it is already on the ground) is 
strictly prohibited and charcoal is expensive.  With 
severe penalties for black market activities and, as 
such, nearly no black market, no other options exist for 
Eritreans seeking fuel.  We expect that the GSE's limited 
supply of hard currency will continue to result in its 
inability to procure enough fuel to meet demand, and 
shortages like those seen in the past weekend will 
continue. End Comment. 
DELISI