Fuelwood remains the primary energy to a majority of the population in Africa. However, little is known about the factors influencing its use particularly in urban centers where alternative energy sources are available. Using cross-sectional survey data from 200 households in the Jimma town of Ethiopia, this study investigates why some urban households use more fuelwood than others. Empirical results of the Tobit model reveal that the association between per capita income and per capita fuelwood consumption is non-linear and that per capita fuelwood consumption is inversely associated with family size and education of the household head. Additionally, refrigerator ownership has a significant positive effect on per capita charcoal consumption. Therefore, energy policy and development projects aimed at reducing fuelwood dependency in urban areas of Ethiopia should work not only to increase the supply of modern energy but also reduce poverty to the poor households.