Morocco PM's petrol business at centre of dispute

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Soaring fuel prices in Morocco have placed billionaire petrol magnate Aziz Akhannouch -- who is also prime minister -- at the heart of a reignited debate about the conflict between business and politics.

For the first time since the war in Ukraine led to a global jump in crude prices, Akhannouch last week had to try to explain to parliament the rise at the pump to a record $1.46 per litre of unleaded fuel.

Over a six-year period, fuel distributors' profits are estimated to have reached more than 45 billion dirhams , said an indignant Hussein El Yamani, head of the CDT trade union. His position is not under threat because of the fuel controversy but he is pressured because of his role as the main shareholder in Afriquia, the country's market-leading petrol station operator.At the parliamentary session, which also addressed higher food prices, lawmakers accused the government of"conflict of interests" and of profiteering.

As a result, household budgets are facing the greatest challenge since 2008, the kingdom's planning commission said.For decades, fuel subsidies helped ensure stability but they were scrapped in 2015 over their high cost. In response, Morocco's competition council in July 2020 reached an agreement under which Afriquia, Total and Shell would pay up to nine percent of their turnover in fines.

 

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