why we need to overhaul the system

why we need to overhaul the system

HAS From September 8, 2023, carriers will receive a new subsidy to cover the successive increases in fuel prices (4 increases in August 2023). This price increase is related to the increase in international crude oil prices due to geostrategic tensions, and more specifically the conflict between Russia and Ukraine. As winter approaches, this price level should be maintained because oil demand should increase. Since the introduction of the subsidy system, the State has paid out no less than Dh5 billion for 180,000 vehicles.

This system has certainly made it possible to stabilize transport prices, but nevertheless has many gaps that need to be filled. “Subsidies are awarded depending on the economic situation. They are not regular and focus mainly on passenger carriers, excluding freight carriers, most of which operate informally. As a result, they do not have access to the platform installed by the Ministry of Transport to benefit from support measures. As a result, we should expect an increase in the prices of fruits and vegetables and other commonly consumed products,” said Bouazza Kharrati, president of the Federation of Consumer Protection Associations. He continued that “it is essential to review the system to make it more effective, through a very specific legal framework.

To learn the necessary lessons, it is essential to take stock and conduct an in-depth survey among industry professionals to obtain their suggestions to improve the entire system. For their part, transport professionals welcomed the introduction of the subsidy, although they had some reservations. “Diesel is an important part of our company. It can amount to up to 70% of our operating costs. The subsidy, which amounts to Dh1,600 for small taxis and Dh2,200 for large taxis, eases this burden somewhat. It is awarded to taxi owners, who normally have to hand it over to the drivers because they are the ones who pay for diesel and are the only ones affected by the price increases. Unfortunately, some owners do not respect this rule and take advantage of legal vagueness. It is therefore essential to establish a regulatory system to guarantee that the distribution of the subsidy is intended for the target groups,” emphasizes Mohamed Harrak, general secretary of the taxi drivers’ union affiliated to the Democratic Federation of Labor ( FDT). .

And he also underlined that “the transport sector in general and that of taxis in particular needs a deep reform to bring it up to speed. The country is still governed by a system inherited from the colonial era and cannot keep up with the socio-economic evolution of the country. Many elements need to be revised, such as the conditions for granting approvals and their operation, the framework governing the trust license, the professional card, social security, the relationship between the owner of the approval, that of the car and the Drivers. Without forgetting the problems caused by mobility applications that function without a legal framework, namely unfair competition. A few months ago, Mohammed Abdeljalil, Minister of Transport and Logistics, acknowledged before the House of Representatives Committee on Infrastructure, Energy, Mines and Environment “the structural difficulties we encountered in improving the transport sector. He emphasized the participatory approach with professionals to explore new avenues of reflection to initiate reform projects.

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