No Fuel Price Increase Expected in Cameroon for 2025, According to…

Fitch Solutions reports no expected increase in fuel prices in Cameroon for 2025, primarily due to the upcoming presidential election. Despite reduced fuel subsidies outlined in the 2025 Finance Law, the government assures that fuel prices will remain stable, discerning a correlation between international price trends and domestic pricing.

Fitch Solutions has announced that there will be no increase in fuel prices in Cameroon for the year 2025, as stated in a recent economic report. This stability is largely attributed to the forthcoming presidential election, which tends to temper significant economic adjustments. The report suggests that due to the political climate, a reduction in fuel subsidies, which occurred in 2023 and 2024, will not lead to increased fuel prices this year.

Despite the assertions made by Fitch Solutions, there is a divergence in the reporting regarding fuel subsidies. The 2025 Finance Law indicates a reduction in fuel subsidies from CFA263 billion in 2024 to CFA15 billion in 2025. Despite this significant decrease, the Cameroonian government assures the public that fuel prices will remain unchanged, as confirmed by Finance Minister Louis Paul Motazé.

Minister Motazé clarified that the reduction in subsidies does not necessitate a rise in fuel prices. He explained that decreases in international market prices allow domestic fuel pump prices to reflect these changes, diminishing the need for subsidies. This line of reasoning reinforces Fitch Solutions’ projection to keep fuel prices stable in 2025, amid efforts to maintain social stability during the election period.

Fitch Ratings previously reported on this trend in November 2024, noting the government’s commitment to gradually reduce fuel subsidies while increasing retail prices. However, the government has indicated that no further increases in fuel prices will occur in 2025. This outlook is consistent with the political and economic conditions leading up to the election, where maintaining public sentiment is crucial for governance.

In conclusion, Fitch Solutions and Cameroonian officials affirm that fuel prices will not rise in 2025, despite a significant cut in fuel subsidies. The stability in prices is attributed to the upcoming presidential election, reflecting the government’s focus on social stability. The alignment of domestic prices with the declining international market further supports this assurance, suggesting a careful balance between economic management and electoral considerations.

Original Source: www.businessincameroon.com