After the liberalization of oil prices in Morocco in 2015, the price of oil in the local market became directly linked to international prices. The Moroccan government abandoned fuel price subsidies, which constituted a major burden on the state budget, and instead let prices change according to international market fluctuations.
This decision led to several changes:
Impact on local prices:
Fuel prices change monthly, and have seen significant increases when international prices rise. While it may decrease if global prices decline, fluctuations are noticeable.
Reducing pressure on the state budget:
Liberalization helped reduce the budget deficit that had been exacerbated by fuel price subsidies. With the liberalization of prices, state expenditures decreased and the saved funds were directed to other sectors such as education and health.
Impact on consumers:
The Moroccan consumer directly feels the rise or fall in prices. Although prices may decrease sometimes, citizens suffer from increases that affect the cost of living, especially with the rise in the prices of other goods.
Competitiveness among distribution companies:
Liberalization has allowed hydrocarbon companies to make competitive offers, however, there has been criticism that there is not enough competition to lead to an actual reduction in prices, with some believing that some companies maintain high profit margins.
Popular criticism and dissatisfaction:
The liberalization decision was widely criticized, especially in times of high prices, as some saw this policy as unfair and negatively affecting the middle and lower classes.
In general, the liberalization of oil prices reduced the burden of government support, but it made the market more affected by global price fluctuations, which affected the purchasing power of citizens and raised discussions about the effectiveness of this policy in the absence of direct support mechanisms for low-income families.
An interesting topic on the price of oil in Morocco could be:
“Analysis of the Impact of the Variation in Oil Prices on the Moroccan Economy: Consequences and Prospects”
Other important topics :
The role of energy diversification in limiting vulnerability to international price variations.
This subject would allow us to examine the complexity of the oil market, the importance of this resource in the Moroccan economy, as well as strategies for managing the economic impacts of price variations.
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| Oil Prices and Analysis of the Impact of the Variation in Oil Prices on the Moroccan Economy After the liberalization of oil prices Morocco in 2015 |
Further drop in fuel expected from this Saturday, December 16, 2023
Prices at the pump should experience a slight contraction, both for diesel and gasoline, . This would be around 20 cents per liter.
“International fuel prices fell throughout the last half of December. .therefore, fuel prices in Morocco should experience an average drop of 20 cents/liter from Novembre 01,”.
This decline comes amid ongoing criticism directed at the government and the Competition Council for not taking sufficient measures against companies that make large profits at the expense of Moroccan consumers.
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