Turbulent Times Ahead: Navigating High Prices, Inflation, Unemployment, and Social Unrest in Morocco’s Precarious Economic Landscape
BY: Hana Saada
ALGIERS- Amidst a backdrop of rising prices, inflation, and mounting unemployment, the Moroccan government is facing intense scrutiny from unions and political parties. Their concerns revolve around the government’s perceived complicity in the face of skyrocketing prices and growing social unrest due to relentless increases in living costs and unprecedented inflation levels.
Critics from the youth wing of the “Justice and Development” party have accused Akhannouch’s administration of prioritizing economic interests and corporate welfare through tax breaks and privileges that fail to directly benefit society and boost employment rates. The government’s pledges to create one million jobs, like many other campaign promises, are now seen as unfulfilled and disregarded by the Moroccan public.
Statistics from the High Commissioner for Planning underscore the government’s failure to deliver on pre-election commitments. Meanwhile, the coalition of taxi unions has condemned consecutive fuel price hikes, decrying the damage inflicted on the sector and citizens at large. This coalition, comprising seven professional syndicates, has criticized the government’ silence and the lack of meaningful intervention, especially by the Competition Council, against the backdrop of multiple price increases within a single week.
The coalition points out the Council’s limited response, merely condemning nine dominant companies that control storage, distribution, and enrichment without any accountability or oversight. Additionally, the coalition highlights the government’s evasion of agreements with unions and the suspension of subsidies for the transport sector, which, even at 30 percent, fall far short of addressing the impact of these hikes.
In the face of what unions term a “catastrophic” situation, poised to trigger social unrest, the coalition decries the government’s inaction and its failure to adopt measures seen in other parts of the world to alleviate the rapid price surge. The coalition denounces these successive increases as avaricious, unjustified against the Moroccan populace, and misaligned with the international market that has yet to witness a decline in oil barrel prices.
Throughout August, fuel prices in Morocco have recorded four consecutive increases, culminating in widespread discontent among citizens and trade unions. The situation is dire, with the threat of street protests and a nationwide strike looming.
Recent media reports suggest that the series of fuel price hikes is far from over in Morocco. Gasoline and benzene prices have risen for the fourth time this month, intensifying dissatisfaction. Gasoline’s price has surged by about 76 cents per liter, while petrol has risen by 52 cents per liter.
Fuel distribution companies have announced these new prices, with gasoline now averaging around 13.20 dirhams per liter (approximately 1.33 US dollars) after a 76-cent increase. Petrol prices have exceeded the 15-dirham-per-liter ceiling (about 1.52 dollars) after a 52-cent increase. These multiple price hikes, coming in quick succession, are expected to have significant ramifications for Moroccans.
In response to these escalating prices, the Coordination of National Trade Unions for the Road Transportation of Goods in Morocco is calling on the government to take decisive action and assume full responsibility for mitigating the impact of ongoing fuel price hikes. They are prepared to resort to protests, including a national strike, if the government fails to address their concerns.
