Morocco’s government on Thursday 5 November 2026 ruled out limiting the profits of fuel companies, saying the move would cost the state about 70 billion dirhams (about US$7.2 billion). Government spokesperson Samir Belfkih said a cap would mean going back to the old subsidy system.
For US readers, the decision shows how a close American trade partner weighs cheaper petrol for drivers against a tight budget. The choice matters because fuel prices touch every household, a theme in our look at Morocco’s money supply and economy.
What Happened
Belfkih, a minister and the official voice of the government, spoke at the weekly press briefing that follows the cabinet meeting, known as the government council. He said capping the profits of fuel companies is directly tied to returning to the compensation system, which is not being considered now.
The compensation system, run through the state’s Compensation Fund (Caisse de compensation), once held fuel prices down with public money. Morocco had ended fuel subsidies by 2015 and freed fuel prices on 1 December 2015.
The Numbers Behind the Decision
Belfkih said a return to that system could cost the state about 70 billion dirhams (about US$7.2 billion at 9.75 dirhams per US dollar, the RT market rate). He noted that the draft 2027 finance bill already allocates 62 billion dirhams (about US$6.4 billion) to its programme for protecting purchasing power.
In other words, the 70 billion dirham figure is above the 62 billion already budgeted for that programme. The government says a profit cap is not on its agenda.
Other Options on the Table
Asked about ways to ease the burden of higher fuel prices, Belfkih said cutting value-added tax or the excise tax on fuel remain on the table. He gave no details on whether either will be adopted.
A tax cut would lower pump prices without the state paying fuel companies directly. It would also reduce the revenue the treasury collects on every litre.
Traffic on a boulevard in Casablanca, Morocco’s largest city. File photo: Rio Times archive.What This Means for Travelers and Businesses
Drivers and visitors in Morocco should expect pump prices to keep moving with world oil prices for now, since no cap or subsidy is planned. Travelers renting cars should budget for prices that can change often.
US companies with operations in Morocco should watch the 2027 budget debate. A tax cut on fuel could lower transport costs, while a subsidy would have raised the deficit.
What Is Not Known
It is not known whether the government will cut value-added tax or excise tax on fuel, or when. It is also unclear whether lawmakers, who are already debating the 2027 finance bill, will press for a cap anyway.
We will update the story once the government gives more detail.
More: Morocco news in English, every day from The Rio Times.
Frequently Asked Questions
Will Morocco Cap Fuel Company Profits?
Not for now. The government says a cap would mean a return to subsidies costing about 70 billion dirhams (about US$7.2 billion).
Could Fuel Taxes Be Cut in Morocco?
A cut in value-added tax or in the excise tax on fuel is among the options under discussion. The government has not said whether it will adopt either.
How Much Is Set Aside to Protect Purchasing Power?
The draft 2027 finance bill allocates 62 billion dirhams (about US$6.4 billion). The 70 billion dirham figure for the cap route is higher.
Does Morocco Subsidise Fuel Today?
No. Morocco had ended fuel subsidies by 2015 and freed fuel prices on 1 December 2015, so fuel companies now set their own prices.
Sources: Government of Morocco, weekly press briefing of the government spokesperson after the government council (Moroccan government portal), 5 November 2026; draft 2027 finance bill, purchasing-power allocation; USD/MAD market exchange rate, 5 November 2026.
Africa: The New Scramble — why the world’s powers are competing for the continent
This article was produced by The Rio Times’ automated newsroom system. How we use AI ·