Fitch Solutions has stated that fuel prices in Cameroon will remain stable in 2025, primarily due to the presidential election. The 2025 Finance Law indicates a reduction in fuel subsidies, yet the government assures that prices will not rise. Finance Minister Louis Paul Motazé reinforces this stability despite the decreasing subsidy trend, citing aligning international market prices.
Fitch Solutions, part of the Fitch Group which includes the credit rating agency Fitch Ratings, has determined that fuel prices in Cameroon will not increase in 2025. Their report, issued in February 2025, emphasizes that fuel pump prices will remain stable, largely due to the proximity of the presidential election.
The report follows recent reductions in fuel subsidies in February 2023 and February 2024, which had raised transportation costs. However, Fitch posits that it does not anticipate further cuts to fuel subsidies in 2025, a statement that may reflect a misunderstanding as Cameroon’s 2025 Finance Law includes a planned reduction in subsidies.
The Finance Law notably decreases fuel subsidies from CFA263 billion in 2024 to CFA15 billion in 2025. Despite this significant cut, the government has reassured that fuel prices will remain unchanged. Finance Minister Louis Paul Motazé clarified in a late December 2024 social media video that decreasing subsidies do not imply rising fuel prices, noting that the alignment of international prices with local prices reduces subsidy necessity.
This perspective from both Fitch Solutions and Finance Minister Motazé correlates with an earlier Fitch Ratings report from November 2024. The report outlined the government’s commitment to reduce fuel subsidies while anticipating no increase in prices in 2025 due to concerns for social stability and the upcoming election.
In conclusion, Fitch Solutions predicts no fuel price hikes in Cameroon for 2025, in part due to the approaching presidential election. The government’s reduction in fuel subsidies, outlined in the 2025 Finance Law, does not indicate an increase in pump prices, as explained by Finance Minister Louis Paul Motazé. The consistent messaging from both Fitch Solutions and the Cameroonian government suggests a stable fuel price outlook in 2025, reinforcing social stability during an election year.
Original Source: www.businessincameroon.com
