By Loubna Flah
By Loubna Flah
Morocco World News
Casablanca, June 28, 2012
The drop in oil prices in international markets to 91 Dollar earlier this week was totally unexpected by the head of government Mr. Benkirane who had announced assertively its decision to increase the oil prices by 20 % and the price of gasoline by 10%.
Oil experts anticipate a considerable drop in oil prices in the forthcoming months. The prices of oil are expected to stagnate since the major oil producers agreed to adopt the initial oil prices in order to cope with the global economy fragility.
Seemingly Benkirane’s government was taken by surprise as the prices of fuel decreased gradually casting doubts over the validity of their arguments. If the fuel prices continue to decrease steadily, the government strategy will surely look incongruent.
The current government predicted that the rise in fuel prices would have a positive effect on the state budget. The High Commission for Planning had predicted that this measure is liable to improve the trade balance by a 0.81 percentage point of GDP in 2013-2014 and 0.59 in 2017.
Faced with this unexpected drop in oil prices, the government seems to be short of alternatives though it should have known that the cost of petroleum fluctuate constantly due to manifold factors, namely the price of crude oil and the forces of supply, not to mention the rising demand that places tremendous pressure on pricing.
What will happen now that the world oil prices are dropping? Is the government’s decision that has further burdened middle classes and transport professionals, still relevant and justified? Many think that the promise to provide assistance to 3 million needy families through the rise of fuel prices needs to be urgently reconsidered.