Moroccan Economy and Finance Minister Nadia Fettah Alaoui said Monday that the government is not relying on a purely technical or numerical approach to address rising fuel prices and their impact on transportation costs, supply chains and household purchasing power.
Speaking during the weekly oral questions session at the House of Representatives, Fettah Alaoui said the government is handling the issue with a social perspective while also assuming its financial and economic responsibilities.
“We cannot talk about prices without taking into account the broader context,” she said.
The minister pointed to external factors, including war-related disruptions, that have pushed global energy prices up by between 40% and 65%, noting that oil prices rose from around $100 to $110 per barrel.
She added that government intervention since March 15 has been costing approximately 1.6 billion dirhams ($160 million) per month.
Fettah Alaoui said the government’s response is designed to manage a temporary situation while preserving room to address larger structural priorities, including accelerating Morocco’s transition to renewable energy.
She described the shift toward renewable energy as a strategic choice, saying the government prefers long-term investment in clean energy over focusing mainly on refining capacity.
Addressing concerns over alleged market concentration among fuel companies, the minister said 10 companies currently operate in Morocco’s fuel market, arguing that concentration would imply the dominance of only two or three firms.
She noted that the issue has been reviewed multiple times by Competition Council and stressed that fuel prices have been liberalized for more than 11 years.
Fettah Alaoui added that the government, through the ministries of finance, interior and trade, monitors the market daily to ensure that price stabilization mechanisms are functioning properly and that supply conditions remain stable across all regions.
On state-owned land management, the minister said Morocco’s public land reserves represent a national asset rather than a simple administrative matter, describing them as essential for supporting development programs, investment and balanced regional growth.
She said the state’s land portfolio expanded significantly between 2022 and 2024, increasing from around 3 million hectares to nearly 12 million hectares.
According to the minister, less than 1% of this land now requires formal registration, reflecting major progress in mobilizing public land for economic and social development.
Responding to questions on public spending efficiency, Fettah Alaoui said rationalizing expenditures should not be confused with austerity.
“This is not about austerity, but about good governance,” she said, adding that every dirham previously spent on secondary expenses should be redirected toward priorities such as the social state, investment and major structural reforms.
She also announced that the Ministry of Economy and Finance will adopt a new three-year programming methodology for the 2027–2029 period, allowing public institutions and infrastructure projects to move beyond simple budget allocation toward clearer planning on how funds will be spent, with stronger emphasis on efficiency and spending discipline.
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