Morocco launches support package for transport sector amid rising fuel prices

Morocco has announced an exceptional support package for transport operators amid rising global oil prices driven by the ongoing US-Iran conflict, which is putting pressure on domestic fuel costs, the government said on March 17, cited by Al Arabiya Business. 

As a major energy importer, Morocco could face high inflation and rising fuel costs if the US-Israeli war on Iran intensifies, though these are partially offset by record-high prices for its phosphate fertiliser exports.

The government said the exceptional measures aim to cushion the impact of higher fuel prices on transport workers to maintain stable transport fares, protect consumers’ purchasing power, and ensure the continuity of supply chains and logistics services.

Fuel prices in Morocco are fully liberalised, with petroleum distribution companies responsible for setting prices. The latest support decision follows a fresh increase in fuel costs that came into effect on March 16, marking the second rise this month as global oil prices reach their highest levels since 2022.

Diesel prices were increased by MAD 2 per litre to around MAD 12.9 ($1.38), while petrol rose by MAD 1.44 per litre to approximately MAD 13.95 in some stations, according to local reports.

The subsidy package covers a wide range of transport segments, including freight transport, public passenger transport, small and large taxis, dual transport services, buses, and tourism transport.

Eligible operators can apply for the subsidy starting March 20 through a dedicated online platform, according to the statement. While the government has not disclosed the total cost of the programme, similar measures were introduced in 2022 following energy price shocks linked to the Ukraine war.