News
Friday 6 September 2013

Indexation of fuel prices part of gradual reform of subsidy fund, official

Vocal synthesis
Indexation of fuel prices part of gradual reform of subsidy fund, official

Communication minister and government spokesperson Mustapha El Khalfi underlined, on Thursday in Rabat, that the adoption of a partial indexation system of the fuel prices is part of the gradual reform of the subsidy fund.

 Signed by head of government on August 19, the decision of increasing or decreasing oil prices will depend on the rise or fall of crude oil prices on the international market by up to 2.5%, El Khalfi said at a press briefing following the weekly cabinet meeting.

 He added that this is a partial and limited measure as it does not involve all products covered by the subsidy fund.

 He recalled that the government earmarked 40 billion dirhams for the subsidy fund to support the citizens' buying power, noting that the 2013 fixed subsidies are 2.6 MAD/L for diesel oil, 0.8 MAD/L for super petrol and 930 MAD per ton for  fuel type 2.

 This measure will enable to deal with financial imbalances and foster transparency concerning prices, in addition to reducing public finances' overdue payments, he said.