The anger crystallizes on the “exorbitant” margins of fuel distributors while the government refuses to subsidize prices at the pump.
Fuel prices at the pump hit new records on Thursday (June 16th) in Morocco, sparking anger from unions and calls on the government to protect purchasing power. Unleaded gasoline is now approaching 18 dirhams (1.70 euro) per liter and diesel nearly 16 dirhams, levels never equaled, in a context of rising inflation and weak growth.
In a letter released on Wednesday, the Democratic Confederation of Labor (CDT), one of the main trade unions, urged the head of government Aziz Akhannouch to “intervene urgently to protect the purchasing power of the working class and the population in general, and realize the extent of the suffering they are undergoing”. Three other unions, less representative, called for a national strike Monday in the public service, local communities and transport to protest against the high cost of living.
Morocco has been facing for several months already continuous price increases, in particular of hydrocarbons, as a consequence in particular of the war in Ukraine.
Many voices are rising again, including on social networks, to demand a cap on the “exorbitant” margins of fuel distributors. The Prime Minister himself, an oil tycoon, is the target of criticism because of his dual roles as a political leader and main shareholder of Afriquia, leader in the local hydrocarbon market with Total and Shell.
Oil tycoon
The government has so far refused to subsidize fuels as before 2015. But it has doubled the budget devoted to subsidies for butane gas, flour, and sugar to 32 billion dirhams (2.8 billion euros ). It has also disbursed around 1.4 billion dirhams since April to help road hauliers (180,000 vehicles) following strike action.
“The government is studying the possible margins to increase the amount of this aid,” said government spokesman Mustapha Baitas on Thursday after the weekly cabinet meeting.
But the price increases are “linked to an international context (…) and the uncertainty about the levels they could reach is increasing every day”, added Mr. Baitas.
In opposition, the Socialist Union of Popular Forces (USFP), demands a reduction in indirect taxes and an increase in corporate tax.
