Morocco freezes domestic oil prices despite worldwide hike

Published June 11th, 2001 - 02:00 GMT

Moroccan expenditures on importation of petroleum related products have grown significantly as a result of recent hikes in worldwide oil prices. Costs have exceeded $30 per barrel, compared with Moroccan budget authorities’ projected levels of $24, reports in Al-Hayat daily said.  

 

Despite the international trend, the Moroccan government has decided to freeze oil prices within the kingdom, so as not to weaken local purchasing power. The government has demanded an additional $15 million from the Basic Merchandise Subsidy Fund to offset anticipated discrepancies in prices.  

 

In the year 2000, Morocco spent $1.5 billion on the importation of 63 million tons of crude petroleum. Furthermore, an additional $500,000 was spent on subsidizing local energy demands, according to official government sources. Large portions of Morocco’s foreign currency revenue have been allocated to these expenditures as a result of price increases. –(MENA Report)  

© 2001 Mena Report (www.menareport.com)


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