Morocco sets up panel to track prices, purchasing power

Morocco's Head of Government, Fatima Zahra El Mansouri, chaired a meeting in Rabat on Tuesday devoted to the national economic situation and the evolution of Moroccans' purchasing power, at the end of which the government decided to create an inter-ministerial committee tasked with tracking price fluctuations and taking the measures needed to protect citizens' purchasing power, with special attention to products in high demand during the month of Ramadan.

Who sits on the committee and what it will do

The meeting brought together the Minister of the Interior, the Secretary General of the Government, the Minister of Economy, Finance and Administration Reform, the Minister of Agriculture, Maritime Fisheries and Food Sovereignty, the Minister of Industry, Trade, Investment and Economic Integration, and the Minister of Transport and Logistics. According to a statement from the Head of Government's office, the committee will meet periodically to track price fluctuations and their impact on the national market and citizens' daily lives, and will take whatever measures are necessary whenever the situation requires.

The statement said the government is "fully aware of the current economic situation and the challenges that come with it, and conscious of the scale of the pressures and costs weighing on Moroccan families, especially poor and middle-income groups." El Mansouri said that "protecting purchasing power and preserving social cohesion are an absolute priority in implementing the government programme," adding that the government "will spare no effort in responding responsibly and effectively to rapid international changes," and that it will work to draft and implement measures aimed at easing the impact of rising prices on citizens' daily lives and ensuring a normal supply of basic goods on the national market.

Context: a parliamentary debate over capping hydrocarbon prices

The committee was created the same day that Minister of Economy and Finance Fouzi Lekjaa settled the government's position on calls by MPs to cap hydrocarbon prices. During discussion of the finance bill in the House of Representatives, he said the government "will never cap hydrocarbon prices" and will not return to the compensation fund system to subsidize petroleum prices, noting that reviving that system could cost the state budget between 50 and 70 billion dirhams. The timing reflects the government's preference for monitoring and regular price tracking over direct price caps or compensation subsidies.

The move also comes amid continued pressure on purchasing power from rising hydrocarbon costs, which had already prompted butane gas distributors to warn of a threatened halt to distribution.

Why this decision matters to Moroccans

The committee's creation comes as price and purchasing-power issues draw growing attention from the public and Parliament alike, amid continued international pressure on hydrocarbon and basic goods prices. By bringing the Interior, Economy, Agriculture, Industry and Transport departments together in one mechanism, the government is seeking to link market monitoring with related sector policies, in anticipation of any disruption in supply or prices that could affect Moroccan families, particularly the poor and middle-income groups cited in the Head of Government's statement, ahead of Ramadan, which typically sees higher demand for several basic food products.