(Business in Cameroon) - Between January and September 2019, Cameroon disbursed XAF17.9 billion to subsidize domestic gas consumption, the Board of Directors of the hydrocarbon stabilization fund CSPH announced.
Over the whole of 2019, this subsidy, endorsed by the CSPH, will certainly be down compared to the XAF35 billion disbursed as a domestic gas consumption subsidy during 2018. Indeed, it is very unlikely that, despite the increase in domestic gas consumption during the end of year festivities, the amount of the subsidy in Q4, 2019 will have equaled that of the first three quarters of the year.
This expected decrease in the domestic gas subsidy in 2019 can be explained by the increase in local production, thanks to the commissioning of the Floating Liquefied Natural Gas unit in Kribi.
As a reminder, according to the CSPH, the 12.5 kg cylinder of gas (imported), which Cameroonian households buy at XAF6,500 at distribution points, actually costs between XAF10,000 and XAF11,000. This leaves a gap of between XAF3,500 and XAF4,500 per cylinder, which is paid for by the State through the CSPH.