Moroccan government maintains subsidies on basic commodities

06/08/2007

[File] Oualalou

Morocco's Finance Minister, Fathallah Oualalou, denied reports that the prices of subsidised products, such as sugar, flour and bread, will be raised, MAP reported Sunday (August 5th). Deputy Prime Minister for Economic Affairs Rachid Talbi El Alami said the government has earmarked 14 billion dirhams to subsidise the prices of hydrocarbons, butane gas, flour and sugar, as it has done in previous years. Alami said prices of other subsidised products, including water and electricity, will not be submitted to any rise, and that subsidies have been increased to maintain the price of bread and cooking oil, which has increased on the international market. Despite the surge in the price of oil to $78 per barrel last week, the government has refrained from raising the prices of hydrocarbons to avoid fallout on other products, Alami concluded.