20/12/2007 (AllAfrica.com) - As Christmas approaches the prices of essential commodities have been steadily rising with palm oil hitting the high mark of FCFA 900 a litre, while a 20-littre jerry can is selling at FCFA 17.000, up from FCFA 12.000.

Only last week, reports from Bamenda and other parts of the Northwest Province indicated that a 20-litre jerry can sold at FCFA 15,000 and a litre for FCFA 850. Six months ago, in Limbe a 20-litre jerry can of palm oil sold at FCFA 7,000 while a litre was sold at FCFA 500.

The soaring prices are blamed on the falling production, even at the level of the Cameroon Development Corporation, CDC, SOCAPALM and PAMOL.

CDC Communication Manager, Charles Endeley, told The Post that the general shortage of palm oil production at the moment is because of low production season. He said it was a usual phenomenon, which affects the oil palm sector every year. But some women who sell palm oil at the Limbe Market complained that the shortage this year is more acute than in the other years.

A member of a women's group that buys and sells oil - Simple Sisters Association - said two months ago they paid CDC to supply them with three tons of oil, but till date they have not received any supplies.

The Post also gathered that the prices of other vegetable cooking oils, such soybean oil, have also witnessed slight increases.An official of the Group Oil Palms Department of the CDC said the acute drop this season could be because of the prolonged rainy season.

He said the shortage could linger on till February when production is expected to rise again.

The Post also gathered from the CDC Palm Oil sales point at Bota that the Corporation was no longer selling oil to the public owing to the shortage.

The Post learned that the Commerce Minister was to meet palm oil producers and other stakeholders to discuss the price hikes.

Bio-fuel Speculations
The Post learned that since palm oil is now demanded internationally for use as a bio-fuel, local vendors are reportedly hoarding it in speculation of a boom.Some reports also hold that a number of prospective buyers from Europe have already come scouting in the country.

Malaysia, which was the largest exporter of palm oil in 2006, reportedly has 14 bio-diesel producing plants with 36 allegedly under construction.By mid 2008, it is estimated that Malaysia will be producing about 100,000 tons of bio-diesel.

Bio-diesel
Bio-diesel or bio-fuel is said to be the new form or energy being sought by countries in Europe as an alternative to diesel got from petroleum.It is said that bio-diesel is more environment friendly and produces far less carbon emissions to the atmosphere.

Writing in the CDC News Quarterly of July 2007, the Director of Plan and Development, Henry Becke, states that, "the current escalation of petroleum prices, coupled with the anticipated depletion of petroleum reserves, has rendered the use of palm bio diesel economically attractive."

He adds that" the total national production of palm oil is about 130,000 metric tons only. At this level, palm oil producers find it difficult to meet demands for domestic and industrial consumption.