Fitch Solutions has announced no fuel price hikes are expected in Cameroon for 2025 due to the impending presidential election. Despite reductions in fuel subsidies, the government has affirmed that fuel prices will remain stable. The Finance Law reflects a significant cut in subsidies, but Minister Motazé indicates that this will not affect pump prices.
Fitch Solutions, part of Fitch Group and responsible for credit ratings, has announced that Cameroon will not experience an increase in fuel prices in 2025. This assertion is detailed in a report analyzing the nation’s economy and attributes the stable fuel prices to the impending presidential election.
The report emphasizes that after previous reductions in fuel subsidies during 2023 and 2024, which resulted in higher transportation costs, future subsidy cuts are not anticipated during the election year. However, the phraseology used may lead to some misunderstanding, implying no expected increase in fuel prices rather than a complete cessation of subsidy reductions.
Notably, the 2025 Finance Law enacted by the Cameroonian Parliament and signed by the President does include a reduction in fuel subsidies. Specifically, it states that subsidies for fuel will diminish from CFA263 billion in 2024 to CFA15 billion in 2025. Despite this significant decrease, the government maintains that fuel prices will not rise this year.
Finance Minister Louis Paul Motazé clarified in a December 2024 video that the decline in subsidies does not equate to an increase in fuel prices, as this situation arises from falling international market prices aligning more closely with local pump prices. The expectations outlined by Fitch Solutions and the statements from Minister Motazé are consistent with earlier assessments from Fitch Ratings.
Fitch Ratings had previously forecasted that the government would manage to decrease fuel subsidies while predicting that socially sensitive decisions regarding retail prices would remain unchanged during the politically pivotal year. This situation indicates a concerted effort to maintain social stability leading up to the presidential elections.
In conclusion, Fitch Solutions has confirmed that Cameroon’s fuel prices will remain unchanged in 2025 despite substantial cuts in fuel subsidies outlined in the Finance Law. This decision aligns with the government’s objective to uphold social stability during the election year, reflecting a careful balancing act between fiscal policy and public sentiment. Finance Minister Louis Paul Motazé’s explanations further clarify the government’s approach to fuel pricing in light of market trends.
Original Source: www.businessincameroon.com
