(Business in Cameroon) – Cameroon might avoid raising fuel prices again in 2025, despite promises made to the International Monetary Fund (IMF). The U.S. credit rating agency Fitch Ratings shared this view in its November 15 report. Fitch maintained Cameroon’s long-term foreign currency credit rating at “B” with a negative outlook but highlighted that political stability could take priority.
According to Fitch, the government pledged to reduce fuel subsidies by raising retail prices by 15% in 2024, after a 21% increase in 2023. However, given the importance of social stability and the 2025 presidential election, the agency “assume the government will not increase fuel prices in 2025, delaying the gradual removal of fuel subsidies”.
Authorities may avoid another price hike to maintain public support ahead of the October 2025 presidential election. Fuel price increases in 2023 and 2024 pushed inflation higher, straining household budgets. Inflation spiked to 7.8% by May 2023, far above the 3% limit set by the Central African Economic and Monetary Community (CEMAC).
Although inflation has eased slightly in 2024, it remains high. Two public-sector salary increases of 5% and a higher minimum wage have not fully offset the impact of higher fuel costs on purchasing power.
Skipping another fuel price hike in 2025, as Fitch predicts, could ease the pressure on government resources. This decision might help balance public finances while avoiding social unrest in an election year.
