Fitch Solutions Confirms No Fuel Price Increase Expected in Cameroon for 2025

Fitch Solutions projects no increase in fuel prices in Cameroon for 2025, linking stability to the upcoming presidential election. There will be a reduction in fuel subsidies according to the 2025 Finance Law; however, the government asserts that this will not lead to higher prices at the pump. The Finance Minister explains that decreasing subsidies are aligned with falling international market prices.

Fitch Solutions, a division of Fitch Group, has announced that there will be no increase in fuel prices in Cameroon for the year 2025. This conclusion is part of the economic report issued in February 2025, attributing the stability of fuel prices to the impending presidential election. Despite prior reductions in fuel subsidies in the previous years, Fitch Solutions maintains that further cuts in 2025 are unlikely due to the election dynamics.

There is a notable discrepancy in the report regarding fuel subsidies. The Cameroonian 2025 Finance Law confirms a decrease in fuel subsidies, from CFA263 billion in 2024 to CFA15 billion in 2025. However, the government asserts that these cuts will not result in higher fuel prices. Finance Minister Louis Paul Motazé clarified this misconception, stating that the decline in subsidies correlates with falling international market prices for fuel, aligning local pump prices without necessitating increased costs for consumers.

The positions of Cameroon’s Finance Minister and Fitch Solutions reflect consistent themes from an earlier Fitch Ratings report. The agency had highlighted a previous intent to raise retail fuel prices due to subsidy reductions in 2023 and 2024. Yet, recognizing the significance of social stability and the approaching election, the expectation remained that fuel prices would stabilize in 2025 and not increase.

In conclusion, Fitch Solutions asserts that Cameroon will experience stable fuel prices in 2025, primarily influenced by the upcoming presidential election and the government’s commitment to maintain prices despite reducing fuel subsidies. The Finance Minister’s remarks reinforce the idea that declining subsidies are a response to international price trends, rather than a precursor to price hikes locally. Overall, both Fitch Solutions and the Cameroonian government suggest a cautious approach to fuel pricing amid election-related considerations and market dynamics.

Original Source: www.businessincameroon.com