(Business in Cameroon) – Finance Minister Louis Paul Motaze, on Monday, June 30, 2025, addressed the National Assembly to allay fears of an immediate fuel price hike in Cameroon. He clarified that despite the ongoing conflict between Iran and Israel, there is no immediate risk to domestic fuel prices.
“Although crude prices on the international market have risen by 15% to 17%, Iranian refineries have not been affected. Fuel prices at the pump remain stable in Cameroon,” he said, according to the official report from his hearing before the Finance and Budget Committee.
Motaze’s remarks come as the government prepares a revised budget to adjust the 2025 Finance Law. He stressed that the upcoming budget amendment was drafted before the Middle East conflict began. He added that the “consequences of this war do not alter Cameroon’s economic forecasts.”
Nevertheless, Cameroon faces a precarious situation. The government could benefit from higher crude prices through increased revenues for the National Hydrocarbons Corporation (SNH). However, the country has been a net importer of refined petroleum products since its Sonara refinery closed in 2019. If global oil prices continue to climb, this dual position could strain public finances.
With crude oil production now estimated at 72,000 barrels per day, Cameroon operates on a fine line. It profits from crude exports but remains vulnerable to rising import costs for refined fuels needed for domestic consumption. This paradox adds pressure on state finances, particularly as the government continues its gradual phase-out of fuel subsidies.
While the immediate impact of the Iran-Israel conflict appears contained, oil market stability remains uncertain. Further escalation or a disruption of the Strait of Hormuz, a critical passageway for much of the world’s oil supply, could lead to a spike in import costs. This would ultimately affect Cameroonian consumers.
For now, the government is maintaining its position. However, its room for maneuver is limited, and the minister’s reassurances will ultimately be tested against unfolding realities.
Written in French by Ludovic Amara,
Translated and Adapted into English by Mouka Mezonlin
