Morocco diesel prices: State gains nothing from fuel crisis

– byLaila · 2 min read
Morocco diesel prices: State gains nothing from fuel crisis

Facing controversy over fuel prices, Fouzi Lekjaa firmly denied any State enrichment. Before the advisors, the minister unveiled precise figures to prove that the crisis costs more than it brings in.

Is the State profiting from the surge in fuel prices? This is the burning question that Fouzi Lekjaa answered this Tuesday, May 12 before the House of Advisors. As geopolitical escalation in the Middle East has sent crude oil up 46% and diesel up 70%, calls to eliminate taxes are multiplying. The deputy minister sought to refocus the debate, rejecting the idea of mechanical enrichment of public coffers at the expense of motorists.

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To dismantle these accusations, the official broke down the taxation applied to hydrocarbons. He recalled a strict rule: the internal consumption tax (ICT applies to volume and not to the selling price. "It is therefore affected neither by price increases nor by price decreases," he insisted. As for the value-added tax (VAT) on diesel, it represents "exactly 0.46 dirham per liter," barely 12% of the recent increase. By comparison, the global energy shock increases the bill by approximately 3.7 dirhams per liter.

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Far from reaping a windfall on fuel, the executive spends massively to cushion this inflation. Each month, the State injects hundreds of millions of dirhams to freeze prices for butane gas, electricity and transport. If public finances are doing well, with revenues up 10.4 billion dirhams by the end of April compared to 2025, this improvement comes from elsewhere. It is corporate income tax (CIT) that is driving growth with an exceptional jump of 25%, proving that current budget health does not rest on fuel sales.