Some 70 percent of subsidies to oil go to diesel-oil used in agriculture

Some 70 percent of subsidies to liquefied hydrocarbons, i.e. 2 billion Dirhams (about US $173.91 million) out of 2.8 billion DH, went to diesel-oil used in the agriculture sector, between August 1999 and October 2001, said Tuesday Moroccan minister of industry, trade, energy and mining, Mustapha Mansouri.

The official said at the question time at the Chamber of Advisors (upper house of the Moroccan parliament) that following the hike in oil prices and given the important role of diesel-oil in Moroccan economy at large and in agriculture in particular, the state decided to increase subsidies to diesel-oil used in the agriculture sector. Unfortunately the subsidized diesel-oil is not always used for its initial purpose, he noted, adding that officials were currently pondering on tainting the diesel-oil destined to the agriculture sector in a different color.

He said that besides the 2.8 billion DH (nearly $243.47 million) used as a subsidy to liquefied hydrocarbons, 2.4 billion DH ($208.69 million) went to subsidize butane gas between August 1999 and October 2001.