Issa Tchiroma and Magelan Kamgaing clash over rising fuel prices

Consumer rights president Magelan Kamgaing is outraged at the rise in fuel prices at the pump (650 FCFA / litre), diesel (600 FCFA / litre) and domestic gas (6500 FCFA / 12 5kg bottle).


The price of kerosene has not changed (FCFA 350 / litre).


The Cameroonian Consumers League (LCC) strongly opposes the government action and their leader wasn’t afraid to voice his opinion to the Cameroonian government in Yaoundé on Tuesday.


For almost ten minutes, Minister Issa Tchiroma faced the fury of Magelan Kamgaing as the pair exchanged vicious blows at the cabinet entrance.


For the president of the LCC, the arguments used to justify the MINCOM adjustment in prices of petroleum products do not hold up. The increase will cause adverse effects on households, which comes as a fatal to the nation.


Cameroonians are currently out of breath. It was operating accompanying measures before considering increasing prices of petroleum products.


Despite the speech of the Minister of Commerce, inflation cannot be controlled.


Magloire Mbarga Atangana gave instructions the prices of essential commodities should not explode on the market. According to Issa Bakary Tchiroma the average that would normally be applied is as follows; Super (825 FCFA), diesel (770 FCFA), oil (705 FCFA) and gas (9200 FCFA).


But the State of Cameroon, aware of the weight of the cross, would rather reduce subsidies instead of deleting them.


MINCOM said during their speech that President Paul Biya, since 2008, has effectively blocked the increase in fuel prices at the pump.


Issa Tchiroma argues that from 2008 to 2013, the state has supported subsidies amounting to 1.200 billion. This represents 36 per cent of the budget of the State of Cameroon for the year 2014, money which could be used to finance multiple projects.


The survival of the National Refining Company (SONARA) is deeply threatened. SONARA has an annual production of 200 million tonnes of refined products. It can meet domestic demand, which amounts to 1.5 million tonnes.


In 2008, titanic work was undertaken to SONARA to improve productivity.


It should be noted that due to the refining company's mission, the treatment of light crude oil, domestic production has grown in heavy crude. SONARA is obliged to import light crude to feed its stocks which results in additional costs.


In regards to 2014, CFAF 150 billion have already been swallowed for the first half and forecasts predict 220 billion annual expenditure.


At the end of the year, the state will have spent 400 billion which is what has prompted the government to make adjustments.


The objective is to avoid the collapse of the system. Accompanying measures are intended to soothe the hearts of consumers, such as keeping the price of kerosene at 350 F / L, reducing parking fees by up to 50 per cent and withholding tax by 50 per cent and the axle tax by 30 per cent.


Not to mention the increase in salaries in the public service and raising the minimum wage.