Morocco supports the transport sector with new fuel aid

The Government of Morocco has decided to support its citizens with a new aid to keep the local economy running and thus avoid an increase in inflation. With this measure, which will come into force in September, the Administration hopes to reduce the impact of the rise in hydrocarbons.

After several requests from associations dedicated to the transport sector, the Minister of Transport and Logistics, Mohamed Abdeljalil, decreed, together with his team, to grant exceptional support to carriers.

Last year the Government granted a similar aid in which more than 180,000 carriers from all over the country benefited. The resources were allocated in 10 tranches with a total cost for the Administration of 5,000 million dirhams.

The measure will affect both the freight and passenger transport sectors. The latter were included after the pressure they exerted from the taxi driver's guild by issuing a joint press release in which they asked the Executive to also think about the measures. Among the organizations represented in the statement are the National Coordination of Representative Bodies of the Taxi Sector, composed of unions affiliated to the UGTM, the UMT, the CDT, the UNTM, the CGT and the ODT.

The objective of the transport guild with the letter is to request a measure that will remain in force until the price of fuel does not fall below 10 dirhams per liter. This demand is due to the fact that since March last year the price of fuel has never been below 11 dirhams.

On the other hand, the freight transport sector is demanding the existence of a “professional diesel”. The general secretary of the national union of the road freight transport sector, Mustapha Karkouri, an affiliate of the UNTM, states that "these fuel price increases do nothing but weaken a sector that was already in ‘bad conditions’ since its liberalization in 2003”. 

Karkouri stresses that road hauliers are the most affected by the increase in fuel prices, although their sector is already experiencing an oversupply compared to demand. He points out that this sector is made up of 90% of very small companies, which makes him right.

The trade unionist claims that in order to improve the current situation it is necessary to continue subsidizing hauliers until there is “professional diesel”, just as there is one for fishermen. Karkouri is also calling for a cap on fuel prices, especially in light of the recent statement by the general rapporteur of the Competition Council that the Council's investigation services believe they have sufficient evidence to prove that 9 companies engaged in anti-competitive behaviour in the supply and storage of diesel and petrol within the distribution market.