Ethiopia Expands Natural Gas Conversion Initiative to Taxis to Cut Transport Costs – PM Abiy

Addis Ababa, October 30, 2026 (FMC) – Ethiopia is extending its natural gas transition beyond public transportation to include taxis, as the government seeks to reduce fuel expenses and make urban transport more affordable, Prime Minister Abiy Ahmed has disclosed.

Speaking in Addis Ababa on Friday following the announcement of the conversion of city buses to natural gas, the Prime Minister said the initiative had also begun in the taxi sector, opening another avenue for expanding the use of domestically produced energy in the country’s transport system.

He indicated that converting taxis to operate on natural gas would help reduce their running costs, potentially easing the financial burden on operators while contributing to more affordable transport services for passengers.

The initiative forms part of a broader effort to replace imported conventional fuels with locally produced natural gas and retain more resources within the domestic economy. By extending the transition to taxis, Ethiopia aims to broaden the practical use of its natural gas resources beyond public bus services.

The Prime Minister’s remarks also pointed to the wider potential of natural gas in reducing transport-related expenses, one of the major cost pressures affecting households. Lower operating costs across different transport services could contribute to easing the cost of moving people and goods.

He stressed that making natural gas production economically meaningful requires expanding the infrastructure and technical capacity needed to deliver it to end users. This includes developing distribution systems and ensuring that vehicles and other consumers can safely and efficiently use the resource.

The taxi conversion initiative adds another dimension to Ethiopia’s efforts to translate domestic natural gas production into practical economic applications, with the intended benefits extending from transport operators to the wider public.