Morocco has allocated a further 400 million dirhams ($41 million) to support road transport operators facing rising fuel costs, with the latest payments covering around 200,000 vehicles, Transport Minister Abdessamad Kayouh said on 5 November.
The assistance will cover the period from 1 to 15 November and include taxis, public buses, passenger coaches, freight trucks and road tractors. The government is continuing to release the payments in 15-day cycles to reflect changes in fuel prices.
Diesel prices approached 17 dirhams ($1.70) per litre in early November, while petrol reached around 15.5 dirhams ($1.55), according to Al Jazeera's reporting on 8 November. The increases have added to transport costs and pressure on household spending.
The latest allocation forms part of a support programme introduced in March 2022. Morocco has spent approximately 11.2 billion dirhams on transport-related fuel assistance since the programme began, including 2.5 billion dirhams in 2026, Al Jazeera reported.
The government says the payments are intended to prevent higher operating costs from translating into increased fares and more expensive goods. Kayouh urged transport operators not to raise official passenger and freight tariffs, according to Hespress.
The government announced the latest round of assistance on 3 November, with registration due to open on 10 November through its dedicated online platform. The programme covers eligible vehicles registered with the relevant transport authorities.
The impact of higher fuel costs has nevertheless reached local transport services. In the Rabat-Salé-Kénitra region, some large taxi drivers introduced fare increases on routes connecting Rabat, Salé and Temara without waiting for official approval, Al Jazeera reported.
The unilateral changes prompted disputes between passengers and drivers. Authorities intervened against drivers who had raised fares without authorisation, while some colleagues stopped working in solidarity.
Mohamed Nouini, a representative of the National Union of Taxi Professionals and Workers affiliated with the Moroccan Workers' Union, told Al Jazeera that drivers wanted a review of fares to reflect rising fuel, insurance and vehicle maintenance costs. He said any adjustment should be agreed with local authorities and take account of passengers' purchasing power.
Freight operators have also criticised the support scheme, describing payments as irregular and insufficient to compensate for higher operating expenses. Their representatives have called for a professional diesel pricing system or automatic payments whenever the price exceeds 12 dirhams per litre, Al Jazeera reported.
A separate dispute concerns the government's refusal to restore general fuel subsidies. Finance Minister Fouzi Lekjaa told parliament that bringing back the previous compensation system could cost between 50 billion and 70 billion dirhams annually, according to Hespress.
Lekjaa argued that broad subsidies would not adequately target lower-income households. He said the government preferred to direct public funds towards education, healthcare and other essential services rather than subsidising fuel prices for all consumers.
The government's position comes as Morocco prepares its 2027 budget. The draft legislation proposes increasing corporate tax on fuel-importing and distribution companies with annual net profits of at least 100 million dirhams from 35% to 40%, Reuters reported on 23 October.
The proposal has prompted concerns among parliamentarians that fuel companies could pass the additional tax burden on to consumers through higher prices. The government has also faced calls to limit distributors' profit margins.
Lekjaa has identified stronger competition and expanded fuel storage capacity as priorities. Morocco's government said in September that existing diesel and butane reserves could cover between 40 and 60 days of domestic demand.
Economic analyst Rachid Sari told Al Jazeera that limited storage capacity and the country's dependence on imported energy restricted its ability to respond quickly to international price fluctuations.
The government is therefore relying on targeted assistance for transport operators, changes to corporate taxation and improvements to energy storage rather than reinstating universal fuel subsidies.
