The Heavy Price of Fuel Deregulation in Morocco
Fuel deregulation in Morocco is hitting citizens hard, costing them an estimated 8 billion dirhams annually, according to a recent statement. Al-Hussein Al-Yamani, General Secretary of the National Union of Petroleum and Gas and President of the National Front for the Rescue of the Moroccan Petroleum Refinery, shared this startling figure in an interview, highlighting the financial burden placed on everyday Moroccans.
This policy, initiated under the Benkirane government and continued by the Akhannouch government, has effectively removed price controls on fuel, leaving the market open to fluctuations. While proponents argue for the benefits of a free market, the reality for many Moroccans is a struggle to keep up with rising costs.
Al-Yamani argues that this deregulation has allowed distribution companies to reap “exorbitant” profits at the expense of citizens. This sentiment is echoed by many Moroccans who are feeling the pinch of increased fuel prices on their daily lives and overall cost of living.
The situation in Morocco mirrors a global trend of rising fuel costs, driven by factors like geopolitical instability and increasing demand. The International Energy Agency (IEA) reports that global oil demand is expected to reach record highs in 2024, further exacerbating price pressures.
This situation underscores the need for governments to strike a delicate balance between free market principles and protecting citizens from economic hardship. While fuel deregulation may have its merits, it’s crucial to consider its impact on the most vulnerable segments of society and explore measures to mitigate the burden of rising fuel costs.
