Morocco will not restore fuel subsidies under the Compensation Fund, Economy and Finance Minister Fouzi Lekjaa said Tuesday, arguing that blanket subsidies disproportionately benefit wealthier households.
Speaking before Parliament’s Finance and Economic Development Committee during discussions on the 2027 Finance Bill, Lekjaa said reinstating generalized subsidies could cost between MAD 50 billion and MAD 70 billion annually without effectively protecting vulnerable households.
He also rejected proposals to eliminate the domestic consumption tax on fuel, saying the measure would reduce pump prices by only MAD 1.20 per liter.
Addressing fuel distributors’ profits, Lekjaa said the sector generated MAD 131 billion in revenue in 2025, with profit margins of approximately 5.85%.
The minister identified stronger competition, expanded fuel storage capacity and separating importation from distribution as reform priorities.
Regarding the inactive Samir refinery, Lekjaa expressed openness to public-private partnerships or new investors, emphasizing its potential contribution to Morocco’s strategic fuel reserves.
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