new gasoline surge, against a backdrop of social unrest

Fuel prices at the pump have hit new records in Morocco, sparking anger from unions and calls on the government to protect purchasing power. Unleaded gasoline is now close to 18 dirhams (1.70 euro) per liter and diesel nearly 16 dirhams (1.50 euro), levels never equaled, in a context of rising inflation and weak growth. In a letter released on Wednesday June 15, the Democratic Confederation of Labor (CDT), one of the main unions, urged the head of government Aziz Akhannouch to “to intervene urgently to protect the purchasing power of the working class and the population in general, and to realize the extent of the suffering they are undergoing”.

Three other less representative unions called for a national strike on Monday June 20 in the public service, local communities and transport to protest against the high cost of living. Morocco has been facing for several months already continuous price increases, in particular of hydrocarbons, as a consequence in particular of the war in Ukraine. Many voices are rising again, including on social networks, to demand the capping of margins “exorbitant” fuel distributors.

The Prime Minister, himself an oil tycoon, is the target of criticism because of his double role as political leader and main shareholder of Afriquia, leader on the local hydrocarbons market (with Total and Shell). The government has so far refused to subsidize fuels as was the case before 2015. But it has doubled the budget for subsidies for butane gas, flour and sugar to 32 billion dirhams (2 .8 billion euros). The government has also disbursed about 1.4 billion dirhams (about 130 million euros) since April to help road hauliers (180,000 vehicles) following a strike action. “The government is studying the possible margins to increase the amount of this aid”said government spokesman Mustapha Baitas.

In opposition, the Socialist Union of Popular Forces (USFP) demands a reduction in indirect taxes and an increase in corporate tax.