Rise Of Fuel Prices Meant To Reform Compensation Fund, Head Of Govt.

Rabat – The rise of petrol, diesel and fuel oil prices is meant to reform the compensation fund so that it could directly benefit the underprivileged, Head of the government Abdellilah Benkirane said.

The compensation fund was set up to provide the help necessary for the poor and restore the social balance, Benkirane said on Wednesday during a special program by TV channels Al Aoula and 2M.

He recalled that the said fund, with a 32.5 billion dirham-budget in 2012, subsidizes a number of basic products as wheat (2 bln dirhams), sugar (4 bln dirhams), and butane (12 bln dirhams).

The reforms carried out by the government are compulsory and seek to directly assist the underprivileged sections of the community (widows, divorced women, the disabled, the elderly), he said, noting that the beneficiaries should have a banking account or an ID.

The increase in fuel oil prices is a strategic choice as it will be used to avoid slashing the investment budget (schools, hospitals, roads..), he went on, saying that without such a decision the budget deficit could reach 7.5%.

The scope of this decision will be limited since it will not impact the transportation prices of people and goods, he added.

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Posted on June 7, 2012, in Business, Morocco News and tagged , , . Bookmark the permalink. Leave a comment.

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