Since February 1, 2023, the price for a superliner in Cameroon has increased from 630 FCFA to 730 FCFA and for diesel from 575 FCFA to 720 FCFA.
After years of procrastination, the government, which decided on these measures in accordance with the directives of the International Monetary Fund, in order to save the economic and financial program in progress since 2021, is facing strong criticism for its choices, from experts.
A victory for the unions who demanded an increase in transport costs after the February 1 petrol price hike?
The government’s success in negotiating with union leaders on this issue? No doubt. Taxi fares will be increased by 50 FCFA, from 250 FCFA to 300 FCFA during the day and from 300 FCFA to 350 FCFA at night. The advantage: The “over the counter” between carriers and users basically remains with the negotiation of the prices of the services.
The scenario was predictable in several ways. According to experts, the government’s subsidy policy, which aimed to freeze fuel prices at dealerships, was no longer sustainable despite the fluctuations in the international situation. “Seven hundred billion FCFA” for 2022, according to the President of the Republic, while the International Monetary Fund has spoken of “800 billion FCFA” for the same period.
Hesitation
The price hike announced by the government ends years of hesitation and resistance to the IMF’s continued guidance. This stance by the Cameroonian authorities almost prompted the Bretton Woods institution to prematurely close the three-year economic and financial program signed in 2021, supported by the Extended Credit Facility (ECF) and the Extended Credit Facility (MEC). The authorities are aware of the operations and have adapted.
On December 31, 2022, President Paul Biya announced the color. For the first time, he hinted at a change of option. It remained to decide between several scenarios, prepared by the government and sent to the Presidency of the Republic for many months.
On January 30, 2023, at the end of a mission to Yaoundé, punctuated by a high-level audience at the Palace of Unity, the IMF announced that it had reached, with the authorities, “a service-level agreement on economic policies to conclude the third review of the Program supported by the Extended Credit Facility and the Extended Credit Facility”.