One major point from the Head of State’s end of year message on December 31, 2023, retained by most Cameroonians, is the fact prices of petroleum products will witness an increase in the year 2024. This increase is due to subsidy on Petroleum products which will witness another reduction in 2024.
In 2022, Government subsidy on the products stood at FCFA 1000 Billion but in February 2023, Government decided to increase the price of fuel in order to offload part of the burden from state coffers. This decision led to the reduction of subsidy on Petroleum products to FCFA 640 Billion. A measure which unfortunately still does not resolve the issue because it is still a burden on state coffers as stated by President Biya in his address, implying another subsidy reduction this year.
‘ We will certainly have no choice but to reduce it further’ declared the President in reassuring however that ‘ Government will ensure that the requisite adjustments do not significantly impact the purchasing power of households’
Ac
cording to l’économie quotidien, a reliable source has pojected a 21% increase in fuel prices as from February 2024.
As a palliative solution to the problem, President Biya also instructed the acceleration of rehabilitation process of the Cameroon Oil Refining Company (SONARA).
It is worth noting that on February 1, 2023, despite the FCFA 640 Billion subsidy, fuel prices increased from FCFA 630 per liter of gasoline to FCFA 730 and from FCFA 575 for a liter of gasoil, to FCFA 720. According to economic experts, the government will increase prices till the subsidy is zero by the year 2025. In this way Cameroon will be able to save its economic and financial programme signed in 2021 with the International Monetary Fund (IMF). It should be recalled that the IMF had recently been pressurizing the Cameroon government to reduce the amount of subsidy on Petroleum products and this therefore comes as a sigh of relief.
A litre of fuel could cost 860 by February 2024.
Source: Cameroon News Agency