Yaoundé - 27 January 2023 -

Cameroon to spend up to CFA672bn on petroleum product subsidies in 2022

Cameroon to spend up to CFA672bn on petroleum product subsidies in 2022
  • Comments   -   Monday, 06 June 2022 14:01

(Business in Cameroon) - The global prices of commodities exported by Cemac countries increased by 12.2% overall over the first three months of this year. In its new Composite Commodity Price Index (ICCPB), the Bank of Central African States attributes this increase to the “general upward trend in the prices of energy and non-energy products due to the Russian-Ukrainian conflict.”

“The war between Russia and Ukraine has led to disruptions in supply channels, causing an increase in the prices of the main commodities, including crude oil,” Beac said. The Bank’s analysts reported that the rise in the ICCPB is mainly driven by oil prices.

Bad news for Cameroon

In Cameroon, the increase in global oil prices has not led to an improvement in the public treasury. Indeed,  the extra cost of government subsidies for petroleum products is expected to overshadow the oil revenues, which rose from CFA562 billion to CFA806 billion (+43.4%) in the Amending Finance Law.

Although the import of petroleum products now weighs heavier on public spending, the Cameroonian government has said it will maintain the fuel pump prices. The Minister of Commerce, Luc Magloire Mbarga Atangana, said this government decision will cost the Treasury a global subsidy (super, diesel, kerosene, and domestic gas) of CFA672 billion in 2022. This is almost triple the CFA244 billion of additional oil revenues provided for in the Amending Finance Law that will be submitted to Parliament for approval during the ordinary session that opens tomorrow June 7.       

Brice R. Mbodiam

The Cameroonian government is continuing its process to extend the special tax on petroleum products to natural gas, despite a request from Gaz du...
For the first time, Cameroon has acquired a pavilion at the Paris International Agricultural Show (SIA). This year, the event will take place from...
The Cameroonian capital is hosting, starting today, a two-day international symposium on the management of companies active in the production and...
The Cameroonian population will soon experience episodes of rolling blackout, which the power utility Eneo blamed in a January 25 statement on the decline...

Mags frontpage

Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer

Albert Zeufack: “Today, the most important market is in Asia”

Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir

Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »