Fuel subsidies: the bill threatening budgets

More than 3,300 billion FCFA

According to a BEAC report on inflation trends, CEMAC countries will spend 3,388.3 billion FCFA, nearly 5.8 billion dollars, on stabilising fuel prices in 2026. That is equivalent to several dozen times the annual budget of the CEMAC Commission.

Why governments subsidise

The price of fuel affects everything: transport, food prices and companies' production costs. A sudden rise at the pump can fuel inflation and spark social unrest. Governments therefore prefer to absorb part of the rise in world prices.

A striking example: between February and September 2026, the rise in benchmark prices was not passed on in Cameroon, which accounts for more than half of the regional basket, at the cost of subsidies considered hard to sustain in the short term.

A hidden cost

Every franc spent on subsidies is a franc that does not go to roads, schools or hospitals. Subsidies also benefit those who consume the most fuel, often the better-off households and large companies. Finally, they encourage smuggling to neighbouring countries where petrol is more expensive.

Towards gradual reform?

Some countries are already adjusting their prices: the Central African Republic has just raised pump prices. Most experts recommend gradual reform, combined with targeted measures to protect the poorest households, such as cash transfers or support for public transport. For Chad, as a producing country, the challenge is also to ensure a steady supply to the domestic market.

Key figures

• Planned fuel subsidies in CEMAC in 2026: 3,388.3 billion FCFA
• Equivalent: nearly 5.8 billion USD
• Cameroon: 52% of the regional basket