Fitch Solutions does not foresee a rise in fuel prices in Cameroon for 2025, attributing this to the impending presidential elections. The 2025 Finance Law will reduce fuel subsidies significantly. Despite this cut, officials assert that prices will remain stable, influenced by international market trends.
Fitch Solutions reports that fuel prices in Cameroon are expected to remain unchanged throughout 2025, mainly due to the upcoming presidential election. The firm, part of Fitch Group, mentions that no increase in fuel prices is foreseen following previous subsidy reductions in 2023 and 2024, which had impacted transportation costs.
Despite Fitch’s assertion, Cameroon’s 2025 Finance Law includes plans to reduce fuel subsidies. The government anticipates subsidies will decrease from CFA263 billion in 2024 to CFA15 billion in 2025. However, officials maintain that fuel prices at the pump will not rise in the coming year.
Finance Minister Louis Paul Motazé clarifies that the decline in subsidies does not necessarily correlate with higher pump prices. He emphasizes that lower international market prices contribute to this stability in local fuel prices. According to him, as international prices drop, they align more closely with local prices, minimizing the necessity for subsidies.
The analysis from Fitch Solutions is consistent with previous evaluations from Fitch Ratings, which noted that while fuel subsidies were reduced due to rising international prices, the government is likely to maintain price stability in consideration of social stability and the approaching election. Previous price hikes were implemented in 2023 and 2024 to adjust for these economic changes.
In summary, Fitch Solutions predicts no increase in fuel prices for Cameroon in 2025, influenced by the approaching presidential elections and the decrease in fuel subsidies. However, the 2025 Finance Law indicates a reduction in subsidies which, according to government officials, does not imply a rise in fuel prices. This outlook reflects a commitment to social stability during a politically sensitive period.
Original Source: www.businessincameroon.com
