(Business in Cameroon) – For days now, long queues have snaked around the few gas stations in Yaoundé and Douala that still have kerosene. At many other locations, the product has vanished entirely, pushing black-market prices through the roof. What normally sells for 350 CFA francs per liter now fetches 500 CFA francs or more, fueling rampant speculation in the outskirts.
On the ground, station managers are keeping mum, leaving consumers in the dark. Yet, Cameroon Oil Depots Company (SCDP), the public company in charge of the distribution of oil products, is trying to allay fears, stating that supplies are available and delivery volumes haven’t changed. An internal source points the finger at inflated demand from marketers for the disruption, though without naming names.
Industrial Diversion
At the Hydrocarbon Price Stabilization Fund (CSPH), the explanation is more straightforward. Waziri Hassan Oumate, Director of Studies Monitoring and Petroleum Statistics, stated that kerosene intended for households is being diverted by industries. Mining operations, agro-industrial firms, construction companies, and logging outfits are allegedly siphoning off vast quantities, taking full advantage of the state-subsidized price.
Oumate told state TV, CRTV, that while household stock is available, industries are tapping into this subsidized product, significantly cutting into the actual volume on hand. He noted that on June 25, 2025, the Minister of Water and Energy convened stakeholders to demand that kerosene be reserved for households. Industries, he added, should source their supplies directly from specialized distributors, rather than through the traditional network.
Subsidy’s Unintended Consequences
Experts estimate that unsubsidized kerosene would cost 770 CFA francs per liter, compared to the current 350. That means a staggering 420 CFA francs per liter is picked up by public funds. This price gap naturally invites abuse, especially as industrial energy costs skyrocket.
Waziri Hassan Oumate recommends importing dedicated volumes for industrial use to safeguard household supplies. However, this stopgap measure doesn’t get to the heart of the issue. The subsidy itself is distorting the market, attracting unintended users and creating systemic imbalances.
Fiscal Squeeze on Fuel Aid
The kerosene shortage also shines a light on the government’s fiscal direction. While fuel prices at the pump are expected to hold steady in 2025, the broader trend is toward gradual subsidy cuts. Between 2023 and 2024, fuel subsidies dropped by 100 billion CFA francs, settling at 263 billion. For 2025, the government plans to slash this figure to just 15 billion, an almost 250 billion CFA franc reduction.
This shift, driven by budget constraints, raises the specter of future social unrest in a country where many people still rely heavily on kerosene for cooking and lighting.
Beyond a simple supply problem, the current kerosene crisis lays bare a deeper imbalance. It reveals a subsidy policy that has become both a lifeline for the poor and a goldmine for opportunistic industrial users. Without tighter control of supply chains and a clear distinction between user groups, subsidies risk lining the pockets of the powerful at the expense of the most vulnerable.
Frédéric Nonos
