Morocco has enough diesel and petrol reserves to last 51 days and 55 days respectively, according to the country’s energy ministry. The ministry also confirmed on Thursday that coal and gas supplies have been secured through the end of June.
The current energy situation has been heavily impacted by disruptions linked to the ongoing conflict in the Middle East, which pushed international crude oil prices to record monthly gains in March.
This has created added pressure for Morocco, which relies entirely on imported fuel and does not have domestic oil refining capacity.
Fuel prices at stations rose by about 30% following heightened regional tensions triggered by U.S. and Israeli strikes on Iran at the end of February. These developments have made energy costs particularly challenging for the country.
In response, the Moroccan government, which had previously removed diesel subsidies in 2014, has brought back targeted subsidies for professional transport operators such as taxi drivers, bus operators, and truck owners in an effort to stabilize prices.
Morocco has depended fully on imported diesel and petrol since 2015, after its only refinery shut down due to unpaid debts and was placed into liquidation.
While the finance minister did not respond to Reuters’ request for comment on how the conflict might affect inflation and the fiscal deficit, the energy ministry stated that steps have been taken to limit the economic impact.
“Morocco’s policy of diversifying supply sources, notably from Europe and the United States, has helped to mitigate the impact,” the energy ministry told Reuters by email.
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Coal remains the dominant source of electricity generation in Morocco, accounting for about 60% of production. Natural gas contributes around 10%, while renewable sources such as wind and solar make up roughly 25%, according to the national electricity regulator.
Although coal prices have also increased due to the Gulf conflict, the ministry said supplies are secured until the end of June, with new tenders expected to be issued in mid-April to cover the third quarter.
Gas supplies have likewise been secured through June. The ministry added that gas consumption fell by 11% in the first quarter, supported by increased hydroelectric power generation after rainfall boosted dam levels.
Morocco imports most of its gas through Spanish liquefied natural gas terminals, using a pipeline that previously transported gas from Algeria.
Despite government subsidies, fuel pricing remains influenced by market forces, as the importation, storage, and distribution of petroleum products are handled by private companies.
The finance minister has acknowledged that the Middle East conflict is likely to increase inflation, although no detailed projections have been provided.
The government’s 2026 budget is based on an oil price assumption of $60 per barrel, significantly lower than the approximate $108 per barrel price for Brent crude reported on Thursday.
The central bank governor indicated last month that Morocco could tap into a $4.5 billion flexible credit line from the International Monetary Fund if global oil prices rise above $120 per barrel.
In 2025, Morocco’s total energy import bill declined by 5% to $11.5 billion.
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