Since April 2024, Prime Minister Joseph Dion Ngute’s office has directed Commerce Minister, Luc Magloire Mbarga Atangana to lift the ban on the sale of non-compliant refined oil, known as “bulk oil”, in Cameroon. This oil, not meeting current standards and often packaged in questionable cleanliness, poses health risks to consumers. The harmful nature of this product was highlighted in a letter from the Commerce Minister to palm oil processors on September 19, 2023.
In response to concerns about food safety, strict instructions were issued to enforce rules on food safety. Despite the known risks associated with bulk oil, the government has decided to allow its sale, citing support for struggling palm oil industry operators facing financial and commercial challenges due to external shocks. The lifting of the ban is said to be “partial and exceptional,” exclusively supplying bulk oil to major users like bakeries, soap makers, and chocolate factories.
However, industry actors express doubts about the control over bulk oil distribution, fearing it may end up in the general market instead of being limited to designated industries. Some palm oil refiners complain about the presence of bulk oil on the market, affecting wholesalers who struggle to sell traceable 20-liter containers to major consumers.
Beyond regulatory, commercial, and health considerations, bulk oil offers cost-saving advantages to producers, allowing them to evade certain production costs and taxes by operating in informal channels. Moreover, some view bulk oil as a tool for market control, enabling refiners to manage competition and exhaust raw material stocks.
There are concerns that the government’s tolerance towards bulk oil may compromise the quality of locally produced refined oils. The economic benefits of bulk oil production could tempt refiners to prioritize its cheaper production over higher-quality refined and labeled oils, potentially impacting overall product standards and market dynamics.