ADDIS ABABA, Oct. 11 (Xinhua) -- The Ethiopian government has granted tax exemption for natural gas-powered vehicles to promote local energy use.
The Ministry of Finance, in a statement issued late Friday, disclosed tax exemptions on all types of cargo vehicles, as well as public transport vehicles powered entirely by natural gas.
The move followed the East African country's recent launch of a major natural gas plant, with an annual production capacity of 111 million liters, last week.
According to the ministry, the new measure is part of a broader national strategy aimed at promoting the use of domestically produced natural gas as a crucial economic option, potentially decreasing the country's reliance on much-needed foreign currency for fuel imports.
The initiative is said to align with the Ethiopian government's ambition to enhance energy security, promote environmental sustainability, and strengthen the logistics and transport sectors by transitioning toward cleaner and more economical energy options.
Despite possessing substantial natural gas reserves, Ethiopia has historically struggled to effectively leverage this resource. However, recent developments in the sector show the government's intense efforts to harness the country's natural gas reserves.
Inaugurating the first phase of the Ogaden Liquified Natural Gas Project in the Somali Region of eastern Ethiopia last week, Prime Minister Abiy Ahmed also launched construction of the second phase of the project, which will add an annual capacity of 1.33 billion liters. ■