Fuel costs rise in Morocco

Petrol pump mp3h0355Prices are set to rise for the citizens of Moroccan. (Image sourced: Rama/commons)The liberalisation of pricing policy has been noted as the core reason for a 12 per cent price increase in one week in October 2016

In the weeks prior to the price rise, chairman of Bank al-Maghreb, Abdelatif Jouhari, has said that 'Energy costs for Moroccans rose due to the liberalisation of oil pricing policies, which allows the per-litre cost to vary with market trends."

However, there are other reasons for the rise in the fuel prices. Gasoil prices have increased over the week in accordance with the rise of fuel prices in global markets. The Organisation of Petroleum Exporting Countries, OPEC, is expected to agree on a production freeze deal in November 2016. This is lead to a further price rise. 

In addition, Morocco recently signed an agreement to pursue a subsidy cut in the energy sector in early 2016 in exchange for a US$6.2bn credit from the International Monetary Fund.  

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