ERITREAN FUEL AND ELECTRICITY: FROM BAD TO WORSE

C O N F I D E N T I A L ASMARA 000337

SIPDIS

DEPARTMENT FOR AF/E, AF/EX, DS/IP/AF, DS/TIA/ITA,
DS/IP/SPC/SO
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: DECL: 06/25/2018
TAGS: ECON PGOV ENRG PINR ASEC ER
SUBJECT: ERITREAN FUEL AND ELECTRICITY: FROM BAD TO WORSE

REF: A. ASMARA 300

B. ASMARA 312

C. ASMARA 322

Classified By: Ambassador Ronald K. McMullen for Reason 1.4 (d)


1. (C) Summary: Eritrea's electricity supplier announced
that on June 27 electricity supplies in Asmara will shut down
for 11 hours per day for an indefinite period. A run on
gasoline occurred on June 26, leading filling stations to
suspend servicing customers. All forms of cooking fuel
remain scarce. End Summary.

13 HOURS OF ELECTRICITY PER DAY IN ASMARA
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2. (C) An Eritrean Electric Authority (EEA) statement
released June 25 said effective June 27 there will be a
regular, scheduled, and ongoing nightly power outage across
the main power grid from 2130 to 0830 for an indeterminate
length of time. A well-placed Embassy source familiar with
Eritrea's electrical grid told Emboff that only two or three
months of the heavy fuel oil needed to power the generators
in Hirgigo (near Massawa) remain. Total's Managing Director
for Eritrea (protect) told Emboffs in early June Eritrea's
fuel supplies, including the fuel for electricity generation,
would be depleted beginning in early July (Ref A).

A RUN ON AUTOMOTIVE GASOLINE
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3. (SBU) Early in morning on June 26, gasoline stations in
Asmara experienced a run on gasoline, leading the Government
of the State of Eritrea (GSE) to suspend commercial gasoline
sales at 0900. A filling station two blocks from the Embassy
had approximately 50 cars waiting for fuel at the time of the
cutoff.

NO FUEL FOR COOKING
--------------

4. (SBU) Eritrea has depleted its supplies of cooking fuel.
Propane disappeared in May, leading customers to substitute
kerosene, which was extremely scarce by mid June. Eritreans
then substituted charcoal, which is now nearly unavailable.
The prohibitively high cost of electricity prevents most
Eritreans from using it for cooking. Wood is not an option
for cooking; Eritrea is a heavily deforested country with
laws against cutting live trees. Relatively well-paid
Embassy LES requested discarded cardboard boxes to use as
cooking fuel.


5. (C) Comment: Eritrea's fuel situation continues to
deteriorate after the GSE failed to pay its Kuwaiti suppliers
(Ref A),and a delay in a reported promise from the Sudanese
to send a fuel shipment. Until now, electricity and
automotive gasoline were the only readily available
commodities the GSE's state-run distribution system reliably
provided. Eritreans desperately seek fuel of all varieties,
potentially leading to a decline of the public's confidence
in the GSE's ability to provide basic goods and services, and
leading to unknown consequences. End Comment.
MCMULLEN