In 2020, the Hydrocarbon Prices Stabilization Fund (HPSF)’s net profit grew three-folds going from XAF5.4 billion in 2019 to 15.14 billion.
Year-over-year, this represents a XAF9.74 billion increase in the net profit of the company.
The company says this stellar performance, despite the drop in international prices of oil products, is a result of the growing demand in Cameroon.
Indeed, during the period under review, the country did not produce enough gas to meet the ever-growing demand. Also, while the demand for kerosene dropped, there was a rise in the use of light fuel oil and gasoline.
Most of the HPSF’s revenues come from levies and duties on hydrocarbons distributed on the national territory (transport equalization), and profits on the stocks in oil depots and filling stations when pump prices increase.
The fund also derives some of its revenues from profits made by oil companies when international prices are down from the official prices set by the HPSF. Therefore, the more oil products those oil companies import at lower prices like in 2020, the more turnover the HPSF generates.
The rise in the company’s net profit may also be due to its decision to stop collecting the taxes and equalization duties through intermediaries. Instead, it opened an account at CCA-Bank for that purpose. Therefore, the taxes and various payments are directly paid into that account.
The HPSF’s 2020 net profit is higher than the XAF12.5 billion it recorded in 2017. Those profits dropped to XAF5.4 billion in 2019 because the fund’s overall expenses rose to XAF56.3 billion, against XAF53.1 billion in 2017.
