Yaoundé - 26 June 2022 -

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

For about a year now, Afriland First Bank CD - 95.6% owned by Afriland First Group- is ripped apart by internal conflicts. The bank’s majority shareholder...
The Port Authority of Douala (PAD) announced it has started works to renovate its container terminal. The project is expected to improve the fluidity and...
Revenue from the Mobile Money tax in Cameroon stood at CFA7.3 billion between February and May this year, according to data published by the Directorate...
The Islamic Development Bank (IsDB) has an active portfolio of $1.1 billion (about CFA683 billion with current value) in Cameroon. The information...

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 »