Fuel: The great impasse

The price of oil continues to rise, each time driving up prices at the pump. As of this week, the price of oil at the pump will cross a new threshold: 18.3 Moroccan Dirhams on average per liter of gaso­line and 15.5 Dirhams per liter of die­sel.

This is a new level of increases that consumers will have to face without government support. The latter refuses to subsidize the price of fuel and the financial abyss that this could cause, especially in a situation where uncer­tainty and the absence of visibility are the key words. Thus the platts of diesel is at 1,300 dollars per ton while that of gasoline is at 1,600 dollars for a dollar/dirham parity of 9.95 Dirhams (MAD). Without even taking port ap­proach fees, taxation and margins into account, the price of petrol and diesel has changed dramatically. And even if the government has ruled out any intervention, many observers are still hoping for “a small gesture” on the tax side, because whether for diesel or for gasoline, the Government respecti­vely applies a domestic consumption tax (TIC) of 2.24 and 3.76 Dirhams per liter as well as 10% VAT. All eyes are set on the TIC, which provides nearly 30 billion in revenue per year, and whose reduction could relieve pres­sure on consumers, as was the case for the recent suspension of import duties on oilseeds and crude sunflower oils to mitigate the impact of the rise in commodity prices on the selling price of edible oils. The whole question is whether the government would be able to give up part of the tax revenue gene­rated by energy products, which is not without risk. The most important thing to do is to stop or reduce the magni­tude of strategic sites even when the room for maneuver is reduced. Until then, support measures have been granted in favor of targeted categories.

At the end of May, expenditures rela­ted to subsidies of basic commodities reached 15.7 billion MAD (about 1.5 billion USD), up by 148.9%. The bud­get devoted by the Appropriations Bill to subsidies of basic commodities is now almost exhausted (17 billion MAD) and an extension of 16 billion MAD has just been granted. Moreo­ver, the Government is late in paying oil tankers by nearly 4 months for the butane gas subsidy. This direct aid to carriers is granted and the price of electricity has not changed at all. For the National Office of Water and Elec­tricity (ONEE), the energy bill would increase to 47.7 billion Dirhams, thus experiencing an increase of more than 25 billion dirhams! Soaring energy prices add to the difficulties of an aty­pical economic situation.

Khadija MASMOUDI