Government announces MAD 400 million in transport subsidies, outlines purchasing power measures

Morocco will allocate an additional MAD 400 million ($40 million) in direct subsidies to road transport professionals, covering around 200,000 eligible vehicles, as the government seeks to limit the impact of rising fuel costs on transport fares and consumer prices.

Transport and Logistics Minister Abdessamad Kayouh announced the measure Thursday during the government’s weekly press briefing, saying the new allocation represents a 60% increase compared with the initial subsidy tranche.

Payments will be made every 15 days to reflect changes in fuel prices at service stations, with disbursements scheduled to begin on Nov. 10 in coordination with the Finance Ministry. The payments will cover both the previous period, from mid-October, and the first half of November.

Kayouh said the subsidy aims to offset the impact of energy costs on passenger transport and the movement of essential consumer goods across the country.

He urged transport operators not to raise official fares for passengers or freight, stressing that the government’s financial support is intended to protect end consumers while maintaining the stability of the logistics sector.

The support will cover vehicles registered with the relevant services of the Transport Ministry and the National Road Safety Agency (NARSA), provided they meet the eligibility requirements.

Kayouh said the government introduced the transport subsidy scheme in March 2022 to cushion the sector against the economic fallout from the COVID-19 pandemic and geopolitical tensions linked to the war in Ukraine. He noted that diesel prices had approached MAD 17 per liter in early November.

Government pledges action against unjustified fare increases

Government spokesperson Samir Belfkih said protecting household purchasing power remained a strategic priority, pursued through measures to increase incomes and curb price inflation.

He said authorities would continue monitoring and taking enforcement action against attempts to raise public transport fares unlawfully, with the aim of ensuring that exceptional financial support reaches eligible operators without being passed on to consumers through higher prices.

Belfkih cited several income-support measures, including a 100% increase in widows’ pensions and a minimum pension of MAD 1,700, with a target of raising it to MAD 3,000. He also said direct social assistance to households would gradually increase from MAD 600 to MAD 1,000 by the end of the government’s term.

On consumer prices, the spokesperson said the government was working to address what he described as inefficiencies in distribution chains, where intermediaries account for nearly 70% of the final price of some products.

He said legislation was being prepared to establish six regional companies next year to organize markets and regulate distribution.

The government has ruled out capping fuel companies’ profit margins or reducing fuel taxes, Belfkih said, arguing that such measures would risk a return to the costly compensation system and put pressure on funding for major social programs.

Rural planning law and housing support

Belfkih also outlined plans in the territorial planning and housing sectors following field visits this week to the provinces of Smara, Laayoune and Tarfaya.

He said MAD 300 million had been allocated to upgrading Laayoune as part of a broader program worth around MAD 680 million. The government is also seeking to accelerate the rehousing of residents of camps in Smara and provide suitable housing for fishermen in Tarfaya.

A new law governing urban planning in rural areas is being prepared for 2027, he added.

The government also plans to provide financial assistance for 100,000 rural homes, with each eligible household receiving MAD 40,000 through the Housing Solidarity Fund. The program will include free technical guidance and studies for beneficiaries.

Cabinet approves borrowing measures and senior appointments

The government spokesperson also outlined decisions taken at Thursday’s Cabinet meeting, including approval of three draft decrees delegating authority from the head of government to the finance minister to manage Treasury borrowing and financing requirements through Dec. 31, 2026.

The measures cover domestic borrowing, external financing and arrangements to refinance costly external debt, as well as agreements to hedge against interest-rate and foreign-exchange risks. They are intended to improve borrowing conditions and contain debt-servicing costs.

The Cabinet also approved draft decree No. 2.26.470, implementing Law No. 52.23 on the regulation of the profession of sworn translators.

The meeting concluded with approval of appointments to senior positions under Article 92 of the Constitution, covering the justice, government secretariat, industry and trade, youth and culture, transport and logistics, finance, and territorial planning sectors.

At the start of his first weekly press briefing in the current government’s term, Belfkih described the meeting as the beginning of a new phase of institutional communication with national and international media.

He said journalists were essential partners in informing the public and emphasized that access to information was a constitutional right for all Moroccans.