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Cameroon to Reduce Fuel Subsidies by 50% in 2023

Fuel Subsidy
Fuel Subsidy

The Director General of the IMF Budget Cyrille Edou Alo’o in an interview with Cameroon Business estimates that the state has planned to spend 350 billion CFA francs in 2023 to subsidize prices at fuel stations .

But in an international context tinged with uncertainty that has caused a drastic increase in the cost of black gold not sure that such an amount is enough to maintain current prices unchanged. For the 2022 fiscal year, the public treasury had to spend 700 billion CFA francs for this subsidy, compared to 150 billion CFA francs a year earlier.

When you buy a gas cylinder at CFAF 6,500, it actually costs CFAF 13,500. The budget bears the difference. This means that if the budget was not drawn up in this way, you would normally have to pay CFAF 13,500. The same goes for a litre of petrol sold at CFAF 639, which costs CFAF 1,350,” said the government member.

By reducing the fuel subsidy by half, the state wants to limit cash flow tensions and direct its resources towards development as prescribed by the IMF. This will not be without impact on households who will see the difference reflected in prices at the pump. When questioned on the issue Cyril Alo’o Edou did not give a clear indication “these are decisions that belong to the highest authorities. It is impossible for me to talk about it because I know nothing about it.

If prices are readjusted, Cameroon would become the third CEMAC country after the Central African Republic and Congo to take this step, a pill that could be difficult to swallow for households already caught in the grip of harsh living conditions due to a generalized rise in market prices.

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