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Cameroon-Refined Oil: Trade Minister Justifies Increase in Market Price by 36%

REFINED OIL
REFINED OIL

The Russo-Ukrainian war accounts for the increase in oil prices on the market. After the outbreak of the war, producers could not continue to obtain sunflower oil from Ukraine, all countries turned to palm oil, affirms Minister Luc Margloire Mbarga.

 

This has resulted in a shortage of supply in relation to world demand, leading the largest producers either to restrict their exports and impose exorbitant export taxes, or to ban exports altogether, he told  media persons on Friday 1 July during an oral question session.

Cameroon, which imports crude palm oil from Gabon to refine it to meet national demand, has seen new prices imposed. “Before the crisis, a litre of crude palm oil from Gabon cost 500 FCFA. Today, the same litre costs 1100 FCFA. And 1100 FCFA is the price approved by the government for refined oil, processed, bottled, processed to the consumer, “explained the Ministry of trade.

PALM POIL

PALM OIL

He added: in these conditions, we cannot expect refining companies to pay the raw material at 1100 FCFA per litre and resell the finished product at the same price of 1100 FCFA, except at the time to ask to close shop. To the dismay of consumers, the price of a litre of refined oil has risen from C 1,100 to 1,500 F an increase of 36.4% in a few months.

According to the minister, Cameroon has a structural deficit of 500,000 tonnes in relation to the installed refining capacity and in fact 200,000 tonnes in relation to our own needs. To fill this gap, in addition to Gabon, Cameroon imports palm oil from Liberia, Sierra Leone, Côte d’Ivoire, but also from Asian countries, notably Malaysia.



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mm Published on 01.08.2022

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