Prospects of another fuel price increase are high following pressure being mounted on the Cameroon government for the complete elimination of fuel subsidies.
This is one of the subjects said to be on the table during talks between government and a delegation of the International Monetary Fund (IMF) currently in the country as part of the 7th review of the Economic and Financial Program supported by the Extended Credit Facility (ECF) and the Extended Credit Mechanism (ECM).
A delegation from the International Monetary Fund (IMF) led by Cemile Sancak is in Cameroon from October 3 to 16, 2024 as part of the 7th review of the Economic and Financial Program supported by the Extended Credit Facility (ECF) and the Extended Credit Mechanism (ECM). At the end of an audience with the Minister Delegate to the Minister of Finance, Yaouba Abdoulaye, Cemile Sancak, leader of the IMF delegation, gave an overview of the issues that will arise in this other phase of the program initiated with the Cameroonian government since July 2021.
“There are several successes of the program. Some reforms remain to achieve the overall objectives of the program. Concerning pump prices, the authorities have reduced the majority of the subsidy. So, there have been two price increases at the pump and now the remaining subsidy is much reduced. Indeed, in the program, we defined the elimination of subsidies,” she clarified.
Her declaration was interpreted as pressure being put on Cameroon to consider another fuel price increase after two successive increases in pump prices. Faced with this pressure, the government, although hesitant, could be forced to abandon subsidies in 2025, to ensure the sustainability of its public finances, Ecomatin has reported.
Between February 2023 and February 2024, the government approved two price increases for certain petroleum products. The first was in February 2023 and the second a year later. The price of a liter of gasoline increased from FCFA 630 on January 31, 2023, to FCFA 840 on February 2, 2024, an increase of FCAF 210, (+33.3%) in the space of one year while a liter of diesel costs 828 Fcfa at the pump since February 3, 2024, compared to 575 Fcfa until January 31, 2023, then 720 Fcfa from the next day.
The prices of gas FCFA 6,500 and kerosene FCFA 350 remained unchanged.
