When the Rotterdam stock exchange impacts fuel prices in Morocco
Fuel prices in Morocco have risen considerably since last February. The price of diesel has even exceeded that of gasoline at gas stations. A precedent that Moroccans have never witnessed.
Faced with general anger from professionals and citizens about this situation, the government has clearly explained that this increase is due to several factors, in particular the resumption of economic activity or the Russian-Ukrainian crisis. It has also decided to support transport professionals to preserve the purchasing power that has been impacted.
The surge in fuel prices in Morocco continues and may, in the future, reach dizzying levels according to observers. Why ? It should be remembered that Morocco is totally dependent on foreign countries for refined petroleum products since the liberalization of the sector. And therefore, this price increase is directly linked to the international market, which means that any development necessarily affects prices at the national level.
A number of economic experts explain its successive increases in fuel prices by the exit from the health crisis linked to covid-19 and current developments on the international scene, in particular the war in Ukraine, which has caused an increase in demand. oil on the Rotterdam Stock Exchange in the Netherlands.
Indeed, the Dutch Stock Exchange is the oldest in the world, and the port of Rotterdam is the largest in Europe. It is the hub of oil in Europe and transport of goods in the world, due to its privileged location on the North Sea. It is also the most active shipping line in the world, particularly in the transport of oil, chemicals, containers, iron ore, coal and minerals.
In response to Russian actions in Ukraine, a group of Western countries decided to impose sanctions on the Putin regime, including a boycott of petroleum products from Russia, which forced a large number of companies to avoid acquiring Russian oil, thus reducing the supply of black gold available on the Rotterdam market.
On the Moroccan side, the Rotterdam market remains the Kingdom’s main oil supplier. This means that the country is subject, like the rest of the world, to intense competition for access to the quantities of oil that can be secured to ensure the supply of energy given this critical situation.
If the Russian-Ukrainian crisis persists and the sanctions against Russia continue, it is not excluded that many countries, including Morocco, will face future challenges in terms of securing their strategic oil reserves. A reduction in the international supply of petroleum products could take place in the face of a sharp increase in world demand, due to the boycott of Russian oil.
In view of this persistent rise in fuel prices, which has generated an increase in certain food products, the government has granted financial support to road transport professionals, which varies between 1,600 and 7,000, depending on the vehicle (180,000 vehicles concerned).
Prior to 2015, the petroleum product subsidy cost the state budget about 49 billion dirhams per year. Today, the compensation fund continues to support the prices of butane gas, sugar and subsidized flour. The government has estimated the cost of this subsidy this year at around 17 billion dirhams.
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