Morocco continues to face fuel price surge amid global supply disruptions

Morocco is facing renewed pressure on fuel prices as global supply disruptions expose its heavy dependence on imported energy.

With no domestic refining capacity since 2015, the country imports about 95% of its fuel needs, making it highly vulnerable to international price fluctuations and supply chain disruptions.

“Any rise in global oil prices directly affects Morocco’s domestic market,” said Mohamed Jadri.

Fuel prices have risen three times in the span of a month following the escalation of conflict in the Middle East, which has disrupted shipping through the Strait of Hormuz, a key global oil transit route.

The first increase took effect on March 1, when diesel reached 10.57 dirhams ($1.05) per liter and gasoline 12.26 dirhams ($1.22), both rising by 0.25 dirhams.

A second increase between March 15 and 16 added about 1.50 dirhams per liter to gasoline and 2 dirhams to diesel.

A third hike between March 31 and April 1 pushed gasoline up by roughly 1.55 dirhams per liter and diesel by 1.70 dirhams.

Gasoline prices now range between 15 and 16 dirhams per liter, while diesel has surpassed 14 dirhams.

To cushion the impact, the government introduced a temporary fuel subsidy of 3 dirhams per liter from March 15 to April 15, targeting transport operators including taxis, buses, school transport and tourism vehicles. The measure is estimated to cost about 648 million dirhams per month.

In February, United Nations Economic and Social Commission for Western Asia warned that rising fuel and freight costs linked to conflict could push Morocco’s subsidy bill to between 20.9 billion and 22.8 billion dirhams in 2026, well above the 13.77 billion dirhams allocated in the national budget.

With disruptions affecting the Strait of Hormuz, Morocco may increasingly turn to alternative suppliers, including Russia, to stabilize its energy supply. Diesel imports from Russia rose sharply from 70,000 tons in November 2025 to 321,000 tons in December, an increase of more than 350%.

The country has faced similar volatility before. During the Russia-Ukraine war, uncertainty in global markets pushed domestic fuel prices above 14 dirhams per liter for the first time.

On Feb. 8, 2022, diesel prices reached 10.88 dirhams per liter while gasoline climbed to 12.50 dirhams. Prices continued to rise in the following weeks, triggering a three-day strike by road transport workers starting March 8.

By the end of that month, diesel exceeded gasoline prices for the first time in Morocco’s history, reaching around 14.50 dirhams per liter, while gasoline rose to 14.44 dirhams in early April.

Jadri said such shocks are not new, recalling similar spikes during the Gulf War and the 1973 oil crisis.

“While Morocco engages in diplomacy, in wars between major powers, its influence remains limited,” he said.

He added that oil price increases quickly ripple across the economy, affecting transport, logistics and raw material costs.

Diversifying energy partners remains key to reducing vulnerability. African producers such as Gabon, Equatorial Guineaand Nigeria could offer alternatives, although shifting supply chains requires complex financial and technical arrangements, according to economic expert Mehdi Fakir.