Cameroonians are bracing for steeper fuel prices in 2025 as the government slashes subsidies further.
The planned reduction aligns with long-standing recommendations from the International Monetary Fund (IMF) to cut fuel subsidies. This marks the third reduction since the government began trimming subsidies early last year.
According to a draft finance bill tabled Sunday, the subsidy will shrink by over 90%, from 263 billion CFA francs ($424 million) to just 15 billion CFA francs ($24 million).
While investors may welcome the reforms, the move is expected to deepen financial burdens for consumers already grappling with high living costs.
Economic analyst Jean Cedric Kouam, from the Nkafu Policy Institute, noted the double-edged impact of the cuts. He highlighted the immediate inflationary pressures but pointed to possible long-term economic benefits.
“The reduction could promote more efficient resource allocation and sustainable energy use, despite posing short-term challenges,” Kouam told Reuters.
In response to past subsidy cuts, the government introduced measures such as raising civil service wages and capping household gas prices. It remains uncertain whether similar interventions will cushion next year’s hikes.
Prime Minister Joseph Dion Ngute, addressing the national assembly Sunday evening, predicted a 4.1% economic growth for 2025, up from 3.8% this year. Growth will be driven by agriculture, mining, and forestry.
Ngute also forecasted a decline in inflation, from 5% to 4%, as part of broader efforts to stabilize the economy amid global economic shifts.
As the nation adjusts to these impending changes, debates about economic priorities and social equity continue to unfold.