How Eritrea Can Overcome the Domestic Fuel and Energy Crisis Following the Long-Term Closure of the Strait of Hormuz
A closed strait has become Eritrea’s fuel emergency.
The long-term closure of the Strait of Hormuz has caused a severe fuel crisis in many countries, including Eritrea. Eritrea relies on fuel for its diesel-powered electricity plants, water trucks, and transportation sector.
Fuel rationing is already slowing daily movement.
The government has partially suspended the sale of fuel in parts of the country. This is not only because supplies are tight. Eritrea is also storing fuel in case transport is disrupted again by the Iran conflict, to protect critical infrastructure, and because of the Ethiopian threat. The result has been restrictions in transportation: public buses and city buses run less often, fewer taxis are operating, and people are driving their cars less.
New suppliers must replace a single dangerous route.
Eritrea must diversify its fuel imports away from a heavy dependence on Gulf shipments through Hormuz. Possible partners include Egypt, Russia, Sudan, South Sudan, and Nigeria.
Egypt and Suez can offer a safer path to Saudi fuel.
Egypt is a particularly practical option. Egypt is connected to Saudi oil and gas pipeline networks and therefore has more stable access to Saudi fuel. Egypt could resell Saudi fuel to Eritrea at a fair price. Egyptian waters are not affected by the Houthi threat in the same way as the southern Red Sea corridor. Reshipping Saudi fuel from Suez could give Eritrea more affordable and more reliable access to fuel, because cargo would move through a route that avoids both Hormuz and the most dangerous stretches of the lower Red Sea.
Eritrea should look for oil and gas off its own shores.
Eritrea also needs to start exploring its own offshore oil and gas potential. It is believed that unknown reserves may exist along Eritrea’s shores. Exploration will take time, but it is necessary if the country is to reduce its dependence on imports.
Solar and wind can cut the country’s diesel burden.
Eritrea should also prioritize renewable energy, especially solar and wind projects. These can ease pressure on diesel power plants and make electricity, water delivery, and transport less vulnerable to foreign supply shocks.
All in all, Eritrea needs new routes, its own resources, and clean power.
Eritrea cannot wait for Hormuz to reopen and hope the shortage ends on its own. The country needs new fuel suppliers, a fair resale arrangement with Egypt through Suez, serious exploration of its own offshore oil and gas, and a faster push into solar and wind. That is how Eritrea can keep electricity plants running, water trucks moving, and buses, taxis, and private cars on the road.