Morocco Increases Fuel Prices

Morocco

Rabat — For petrol, the price is up 0.59 dirhams per litre, for diesel it is up 0.69 dirhams per litre, and 662.88 dirhams per tonne for industrial oil.

As part of reforms to the Subsidisation Fund, the government adopted a partial index-linking system for the prices of liquid petroleum products.

Fuel prices will be adjusted if the price of crude oil on the international market increases or falls by 2.5 per cent. The government said this would establish financial equilibrium, make pricing transparent and reduce the public debt.

But some lawmakers were sceptical. During a meeting of the Finance Committee on September 11th, MPs expressed concerns about the repercussions of this measure on consumers’ purchasing power.

Party of Authenticity and Modernity parliamentary group head Abdellatif Ouahbi criticised the government for taking a unilateral decision. He favoured a national debate on the reform of the Subsidisation Fund, instead of measures that affect citizens’ daily lives. “We are heading toward a social explosion,” he warned.

MP Milouda Hazib said the decision was a provocation of the public and could be costly for social peace.

“Rather than adopt a measure that affects the public’s purchasing power, the government should focus on other matters, such as poverty reduction, unearned incomes and corruption,” Istiqlal parliamentary group head Noureddine Mediane said.

His party challenged the decision, calling for national strikes and sit-ins. In a statement, the party called for the creation of a “social and global front against the government”.

The statement claimed this price hike would be “followed by an increase in the cost of transporting goods and passengers as Moroccan families bear the brunt of the expense of Ramadan, family holidays and the start of the new school year”.

General Affairs and Governance Minister Delegate Najib Boulif reassured MPs, noting that the government would implement supporting measures to prevent sudden hikes in the prices of commodities.

Transport will be the first sector affected. The government plans to deal with rising prices at the pump in order to avert an increase in transport fares (large taxis, small taxis and buses).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s