Lekjaa rules out fuel subsidy return: cost up to 70bn MAD
Morocco's Finance Minister Fouzi Lekjaa has ruled out reinstating fuel subsidies through the Caisse de Compensation, citing an annual cost of 50 to 70 billion dirhams, as the government creates a new inter-ministerial committee to track price fluctuations.
Morocco's Minister of Economy and Finance, Fouzi Lekjaa, ruled out on Tuesday any return of fuel subsidies through the Caisse de Compensation, Morocco's price-support fund, during a session of the Finance and Economic Development Committee at the House of Representatives devoted to detailed discussion of the 2027 Finance Bill. The minister said the government tracks raw-material prices on international markets daily, calling for being honest with citizens rather than playing on emotions.
Why Lekjaa is ruling out a return to the subsidy fund
Lekjaa argued that the traditional subsidy mechanism mainly benefits higher-income, heavier-consuming households, while vulnerable and poor households benefit the least from it. He said reinstating a broad, untargeted subsidy would require annual budgets of between 50 and 70 billion dirhams, which "would not achieve social justice nor protect the groups it is meant to target first," in his words.
On proposals to cut taxes on fuel prices, Lekjaa warned that scrapping the domestic consumption tax (TIC) would only lower the price by about 1.20 dirhams per liter. On the debate over distribution companies' profits, he revealed their revenue reached 131 billion dirhams in 2025, with a profit margin of no more than 5.85%, compared with the peak recorded in 2017. He set the next phase's priorities as completing the conditions for free competition, boosting national storage capacity, and separating import and distribution activities to increase transparency.
On the Samir refinery, Lekjaa said oil refining is no longer a strategic option even for major producing countries, and does not necessarily guarantee lower local prices, especially if the oil barrel price exceeds $100, while welcoming any public-private partnership to restart the plant.
A new inter-ministerial committee to protect purchasing power
Separately, Head of Government Fatima Zahra Mansouri chaired a meeting in Rabat on the national economic situation and the evolution of citizens' purchasing power, attended by the ministers of Interior, the Secretary-General of the Government, Economy and Finance, Agriculture, Maritime Fisheries and Food Sovereignty, Industry, Trade, Investment and Economic Integration, and Transport and Logistics. Mansouri said protecting purchasing power and social cohesion are top priorities of the government's program, announcing a new inter-ministerial committee that will meet periodically to track price fluctuations and take necessary measures, especially for goods seeing rising demand, such as during Ramadan.
The committee's creation comes weeks after Lekjaa announced raising direct social support to 1,000 dirhams, as Moroccans await a concrete impact from these measures on their household budgets in the coming months.