Morocco Removes Subsidies for Petroleum DerivativesSource: www.export-egypt.com 12/2/2014, Location: Africa |
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The Moroccan government has decided to remove the subsidy of all petroleum products, which cost two billion euros in 2012, according to Mr. Mohammed Wafa, Minister of Public Affairs.
Mr.Wafa added that “the subsidy shall be finally removed by late December”, through a decree to be issued by the government." "El Missa" newspaper quoted him on Thursday , saying that he had talked about "the complete lifting of subsidy on oil Products by the end of November as a deadline. The government alliance, which is led by the "Justice and Islamic Development" party, began a progressive reform of the competent fund for the subsidy of consumables (gasoline, flour and sugar ...). The subsidy of petroleum derivatives, according to official figures, represents about 90% of the total cost of the subsidy, but the government has decided to ease the burden on the public budget and to implement the recommendations of the World Bank for the total liberalization of the price of gasoline as of the beginning of 2015, after partially liberalizing the price of diesel fuel. Morocco lacks energy sources, which obliges them to import oil and gas in large quantities, and to subsidize their consumption through a support fund. On the other hand, the government announced in May a program, valued at 4.1 billion euros, between 2014 and 2017 by the National Bureau of Electricity and Water, whereby more than six million subscribers shall bear part of this amount by increasing the amount of their subscriptions. This has actually begun last August. The Moroccan International Energy Agency, has recommended in late October to "continue to remove the subsidy" handed out for energy consumption. It also recommended the development of "an integrated policy" for the consumption of gas since the majority of imported gas is for domestic consumption. It is sold at only a third of the real market price thanks to the subsidy offered by the Fund. The government plans to remove the subsidy for household gas, but according to Mr. Abdel Kader Omara, Minister of Energy and Minerals, there will be a different approach for butane gas. |
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