Nadia Fettah warns against easy solutions for price increases

Nadia Fettah, Minister of Economy and Finance and a member of the RNI political bureau, has cautioned against "easy solutions" to rising prices, particularly concerning fuel. She stated that the government is aware of citizens' concerns but emphasized that fuel price increases are a visible symptom of broader economic imbalances. These imbalances are largely due to external factors like geopolitical tensions driving oil prices between $93 and $100 per barrel, and internal fragilities such as seven years of drought impacting agricultural production. Global logistical disruptions, which have tripled or quadrupled container costs, have also contributed to inflation across supply chains. The minister rejected direct intervention on prices, such as capping or adjusting VAT, stating that price capping is not a viable option. She articulated the principle of "not transforming an external crisis into a structural crisis," aiming to avoid immediate responses that could strain public finances. While acknowledging criticisms, including those from the Competition Council, she maintained the coherence of the government's approach. Instead of controlling prices, the government's policy focuses on cushioning the impact on citizens' purchasing power. This involves targeted measures, costing 1.6 billion dirhams per month to support transporters, and maintaining subsidies on essential items like butane gas, electricity, sugar, and flour. The total financial commitment for these measures amount