In 2026, and under the impetus of budgetary reforms initiated with the International Monetary Fund (IMF), the Cameroonian government plans to almost completely eliminate fuel subsidies. This measure is part of the 2025/2026 budget law. It aims to sustainably clean up public finances and free up margins to finance investments considered more productive.
Long considered as a social buffer against the volatility of international oil prices, fuel subsidies have weighed heavily on the state budget. By 2022, their cost had reached nearly 700 billion CFA francs (approximately 1.23 billion USD). This amount exerted significant pressure on public cash flow. Since then, Yaoundé has gradually reduced these aids, notably through successive increases in pump prices in 2023 and 2024. The objective of these increases was to bring domestic prices closer to global market levels.
The reform is now entering its most sensitive phase. The total elimination of subsidies mechanically implies a new increase in fuel prices, unless there is a major reversal in international prices. This perspective fuels concerns among households and economic operators, in a context already marked by persistent inflation. The rise in fuel prices is expected to impact transport costs, logistics, and ultimately consumer prices.
Aware of the social and macroeconomic risks, Cameroonian authorities ensure they want to support this transition with targeted measures. The government is working on implementing an automatic mechanism for setting pump prices, indexed to international prices, to enhance transparency and predictability. At the same time, support measures for the most vulnerable households are being studied to mitigate the impact of the shock on purchasing power.
From the perspective of donors, the end of subsidies is seen as an essential structural reform. It would reduce an inefficient and regressive expenditure item, with subsidies benefiting more affluent households and energy-intensive businesses. The resources thus freed up could be redeployed to sectors with high economic and social impact, such as infrastructure, education, health, or social protection.
However, the political and social equation remains delicate. The success of the reform will largely depend on the authorities’ ability to explain its stakes, finely calibrate compensation mechanisms, and preserve social stability. For Cameroon, the end of fuel subsidies thus appears as a major test of budgetary credibility and economic governance.
