Government announces increase in fuel prices, reconsiders minimum wage
The Government of Cameroon has announced a 15% increase in the price of fuel and a rise in the minimum wage for private workers to F CFA 41, 875 as well as a 5.2% increase in civil servants’ salaries.
The information is contained in a release signed by the Secretary-General at the Prime Minister’s office on January 31st, 2023.
As of today February 1st, 2023, the price of premium grade petrol (super) will increase from F CFA 630 to F CFA 730 per litre, that of diesel (gasoil) will rise from F CFA 575 to F CFA 720 per liter and petroleum sold by SCDP to industries will be at F CFA 560.19.
The release also states some social support measures to secure consumer purchasing power. The price of kerosene and cooking gas were maintained at F CFA 350 fcfa per liter and F CFA 6,500 per cylinder of cooking gas respectively.
It also highlights that in a bid to reduce the economic burden that this increase will have on all sectors, the minimum wage for private workers will move from F CFA 36,000 to F CFA 41,875.
The decision comes at a time when fuel scarcity is being experienced across the country.
The fuel price increase follows an agreement between the government and the International Monetary Fund, IMF, on economic policies to conclude the third review.
Prior to this decision, the IMF published an analysis of the impact of rising fuel prices on the Cameroonian market. According to the document, the government will have to spend F CFA 712 billion to maintain pump prices in the country this year. This is more than double the amount initially planned for the year (F CFA 350 billion).
It should be recalled that in 2022, the country spent nearly F CFA 800 billion to subsidize pump prices of petroleum products based on official statistics. For the year 2023, it budgeted the subsidies at F CFA 350 billion, less than 50% of the amount needed to keep fuel prices unchanged at the pump, according to IMF projections.
