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Friday, December 9, 2011

Cameroon taxi drivers threaten strikes over fuel

YAOUNDE Dec 8 (Reuters) - A union for Cameroon taxi drivers warned on Thursday its members would strike indefinitely if the government of the oil-producing state follows through on a plan to cut fuel subsidies.

Rising food and fuel prices in the central African state triggered riots in 2008 that killed more than 100 people.

"We, taxi drivers and motorcyclists in Cameroon, we will not accept the increase, be it by a franc, on the price of any petroleum product," according to a statement by the SYNESTER union, sent to the government.

"This is a general strike notice because the day the increase will be decided, we will immediately go on a strike of an indefinite duration," it said.

The warning follows a meeting between the government and fuel consumer associations during which Cameroon's finance minister said the state wanted to cut the subsidy.

Cameroon is expected to spend about $600 million by the end of the year on fuel subsidies, 25 percent over budget, as it seeks to shelter consumers from high global energy prices.

"This amount is too much and I think it is high time the government should consider lifting or reducing it significantly so that we can raise enough money for the development of planned major projects," Finance Minister Essimi Menye said during the meeting.

The government is expected to cut the subsidy at the start of 2012, though this could not be confirmed. Cameroon maintained the subsidy through October elections that saw incumbent President Paul Biya win a new term.

The International Monetary Fund has urged countries across west and central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling.

The past months have seen governments in Nigeria, Guinea, and Chad moving to cut state subsidies on fuel. ($1 = 489.8670 CFA francs) (Reporting by Tansa Musa; Writing by Bate Felix; Editing by Matthew Jones)

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