Govt backtracks in fight against poverty with high fuel prices

Just a few weeks after the government decided to withdraw part of her subsidies on fuel, transport fares in rural areas have increased.

Farmers told TFV that they were wondering how the government could fight poverty by increasing the prices of fuel and authorizing increases in transport fares.

The farmers regretted that the government has dealt a terrible blow to her fight against poverty in the rural areas because transport fares on very bad roads had been exceptionally high. Those who ply the roads in rural areas, they said, are like operating monopoly businesses without checks given that few business persons would risk their vehicles or motor cycles on very bad roads.

The farmers regret that because of bad roads and fuel prices their popular mode of transportation, ‘benskin’ now costs higher than ever. With the high cost of transportation prices of local commodities like soap, rice, salt and many other basic commodities have witnessed significant price increases. Worst of all, prices of local building materials like sand, gravel and stones have increased as well as taxi fares as authorized by the government while the incomes of the masses remain same.

Paul Tchakounte Tankou, a cocoa farmer in Ebonji told TFV recently that “petrol prices have affected us negatively because most farmers use bikes to go to the farm, carry produce home; removing cocoa from the farm has become more costly, a situation that has increased poverty among us because we are also suffering from very bad roads”.

Like his colleague, Kolle Ndille, another farmer in Tombel Sub Division says because of fuel price increase, transportation has doubled and this has affected the prices of almost everything in the local markets except for their food crops thus reducing the purchase power in the rural areas.

“A triple load of sand now costs 100000 francs CFA up from 80000 francs CFA; our union reached the decision because of fuel price increase, harassment from the police, gendarmes, mines and powers”, Lyonga Emmanuel, a seasoned lorry driver who transports sand told TFV. To proof that what he is saying is true the driver waved a price list signed by officials of the ‘Buea Tiper Drivers’ Union’ president after insisting that the union has put people to sanction any driver who refuses to apply the price increases.

Justifying further, the lorry driver said, “those digging the sand in the River Moungo and in Muyuka have increased prices after fuel price increase and salary increase to civil servants, when we go and buy we pay 2000 francs on each of the police and gendarme check points mounted all over and 1000 francs to the ministry of mines”.

According to the driver “the uniform men will receive 2000 if your motor has all documents but if you lack a document just know that you will start negotiating from 5000 francs”. In most rural areas farmers have complained of a sharp increase in the prices of basic commodities following the withdrawal of part of government subsidies on petroleum products last July 2014.

Following the withdrawal of the subsidies petrol and gas oil prices increased by 15% while cooking gas moved from 6000 to 6500 francs CFA. Reduce government spending instead of withdrawing subsidies-observers urge Some observers have argued that the government could have been more realistic by cutting expenditures or what they called wastage or leakages in government’s expenditure instead of reducing the purchasing power of the masses.

Observers argue that the contract procedures in Cameroon still allow holes for corruption so what ever project be it social, a lot of wastage prevents the proceeds from reaching the poor.

Although government officials argued that this fuel increase would not affect the local masses much because they use less fuel, the burden seems to have been transferred to the final consumer who in the most part is the poor local masses with meager incomes; some of whom live far below the poverty line.

“How many of those who took the decision to increase fuel prices buy petroleum products, some of them have gone decades without buying because they are entitled to government petrol bonds”, Elias Suh a business man in Kumba regretted to TFV.

According to the business men there is a lot of wastage in the Cameroon public service through corruption that has created a situation where vote holders, tax collectors and top civil servants end up very rich at the expense of the masses as much of the money is lost along the chain from the award of contracts to the receiving of the contracts.

“The increase in petrol prices has affected us negatively”, Alum Christopher, farmer Ndian Division

“The increase in fuel prices has affected us negatively. ‘Okanda’ men who transport us have increased prices to cope with the increases in other items and petrol. The price of everything in the market is increasing. The increase in petrol prices is increasing poverty and I think this is a problem to us in the rural areas because our roads are bad and those who ply the road seem to have some monopoly. We do not only spend more on transport but on basic necessities because prices are going up. People are desperate but what can we do? The government should improve our roads and give subsidies to farmers to alleviate the cost of living in rural areas. The government has also increased civil servants’ salaries to cope with the increased cost of living, what about us.”