Fitch Solutions projects no increase in fuel prices in Cameroon for 2025, largely due to the upcoming presidential election. The 2025 Finance Law includes subsidy cuts, but officials assert that fuel prices will remain stable. Despite earlier speculation, the government aims to ensure social stability by keeping prices unchanged as international market prices decline.
Fitch Solutions has announced that there will be no increase in fuel prices in Cameroon for the year 2025. This conclusion, presented in a report on Cameroon’s economy, is largely attributed to the political context of the upcoming presidential election. The report mentions that fuel prices at the pump are expected to remain stable throughout the year.
The report clarifies that following subsidy reductions in February 2023 and February 2024, which raised transportation costs, it is unlikely there will be additional cuts to fuel subsidies in 2025. However, the wording may have created some confusion, as Fitch Solutions likely intended to communicate that no further price increases would occur rather than no additional subsidy reductions.
Despite the assertion from Fitch Solutions, the 2025 Finance Law does propose a reduction in fuel subsidies, decreasing from CFA263 billion in 2024 to CFA15 billion in 2025. This was formally approved by Parliament and signed into law by the President.
Cameroon’s government, represented by Finance Minister Louis Paul Motazé, reaffirmed that fuel prices will not increase in 2025, countering assumptions that subsidy reductions would lead to higher pump prices. He noted that the decrease in subsidies corresponds with declining international market prices, thus justifying stable fuel prices domestically.
This perspective, shared by both the Finance Minister and Fitch Solutions, is consistent with Fitch Ratings’ earlier analysis, which anticipated a governmental commitment to social stability amid the forthcoming elections. They estimate that, despite previous increases in retail prices, there will be no rise in fuel prices in the upcoming year.
In summary, Fitch Solutions has predicted stable fuel prices in Cameroon for 2025, considering the political landscape of the presidential election. Despite significant cuts to fuel subsidies outlined in the 2025 Finance Law, government officials assert that fuel prices will remain unchanged. This stance aims to maintain social stability amidst economic adjustments and reflects a broader strategic approach by the Cameroonian government during an election year.
Original Source: www.businessincameroon.com
