Rabat – Mohammed Abdeljalil, Morocco’s Transport and Logistics Minister, said yesterday that his ministry is in the process of formulating a draft law that would index transit fees against fuel prices.
The draft law aims to create a legal tool that would in the future mitigate the effects of fluctuating fuel prices on transit professionals, Abdeljalil said.
With the new draft law, the ministry hopes to provide a structured approach to dealing with the problem of fluctuating hydrocarbon prices and their effects on the transit sector, Abdeljalil explained while responding to a question during a hearing at the House of Representatives.
The new law, when and if approved, will allow transit professionals to revise tariffs once fuel prices change, he said, adding that transport fees subject to state law such as urban transit are not concerned with this new measure.
But the law does not mean that the government will intervene to dictate transport tariffs. Instead, transportation costs will remain subject to the offer and demand principle governing liberal markets, as well as to agreements between customers and service providers, Abdeljalil explained.
Morocco’s transport ministry and different government departments will deliberate on the draft law before submitting the final version for approval, the minister concluded.
Fuel prices have been breaking records in Morocco in recent months, echoing the international trend that started due to the economic fallout of COVID-19 and was made worse with the Ukraine crisis.
In response to rising energy prices, Morocco’s government announced it will directly support transit professionals to mitigate the effect of rising fuel prices on their activities.
Under the new measure, the government has allocated over MAD 300 million ($30 million) in emergency funds, according to official sources.
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