Moroccans concerned as government increases fuel prices

Reading time 1 min.

The Moroccan government’s decision to increase fuel prices from July 1st, has aroused concern among Moroccans.

To offset rising oil prices, the Moroccan government has decided to increase fuel prices and ease pressure on cash compensations.

The increase is about 1 dirham per liter while subsidies are set at 3.40 dirham per liter for petrol and 3.90 dirham per liter for diesel 350.

The price of industrial fuel has been increased by 500 dirham per tonne and will remain subsidized at over 2.116.17 dirham per tonne.

The increase in oil prices on the international market has raised the compensation fund to over 10 billion dirhams, prompting the government to proceed with the increase.

The government reassured Moroccans that normal diesel fuel and butane gas, which are widely used in the transport sector and by households and their absorption of more than 80% of the overall grant,will not undergo price increment.

Fuel used in the production of electricity will also not be affected.

Moroccan Prime Minister, Abbas El Fassi, has promised that the increase in oil prices on the world market will not discourage the government from continuing its support of fuel prices.

The budget allocated to the compensation fund by the Finance Act has increased from 20 billion dirham to 40 billion dirham to preserve the purchasing power of citizens.

High cost of living  In the past year alone, food prices have shot through the roof while other household essentials have undergone unprecedented price hikes. Coupled with a global financial meltdown, this situation has been mostly harsh on the poor. The Haiti food riots which began in April, 2008, quickly spread like wild fire to Egypt, Senegal, Burkina Faso, Ethiopia, Indonesia, Madagascar, Ivory Coast, Senegal, Cameroon... According to experts, this situation was in part created by careless government policies, the rising popularity of bio-fuels as well as the global financial crisis, among other factors...
Support Follow Afrik-News on Google News