Cameroon fetches XAF30 billion from Chadian oil transit tax

Cameroon fetches XAF30 billion from Chadian oil transit tax

Cameroon

Cameroonian Treasury gained a total of XAF30 billion last year in transit rights for Chadian oil via the Chad-Cameroon pipeline, Cameroon Tribune said.

Since 2014, revenues collected from these transit rights have been constantly increasing, particularly as a result of the re-evaluation carried out October 29, 2013. Following a renegotiation between Cotco, the Chad-Cameroon pipeline manager, and Cameroon’s government, the transit right grew from XAF195 ($0.41) to XAF618 ($1.30) per barrel. Better still, in accordance with the provisions of amendment 2 of Cotco establishment agreement, the duty was updated September 30, officially increasing from $1.30 to $1.32 per barrel.



Sources said the updated rate is applied to crude volumes extracted since October 1, 2018. Same rate applies for crude that will be extracted until 30 September 2023, the date of next re-evaluation. [Source: Business in Cameroon]