Diesel prices in Morocco could rise further in the coming days as international gasoil prices climb amid continued volatility in global energy markets and the conflict in the Middle East, an industry representative said.
Houcine El Yamani, head of the National Front for the Rescue of the Moroccan Petroleum Refinery and secretary-general of the National Petroleum and Gas Union, told Hespress English that diesel prices could surpass 18 Moroccan dirhams ($1.80) per liter if international prices continue to rise.
El Yamani said the price of a ton of gasoil on international markets has approached $1,400, with geopolitical tensions contributing to continued price volatility.
In Morocco, diesel currently costs around 11 dirhams per liter before taxes, he said. After taxes, the price exceeds 15 dirhams, before distributors’ profit margins are added.
El Yamani said the trajectory of international energy prices will depend largely on developments in the Middle East conflict, making it difficult to predict how high fuel prices could ultimately rise.
Saudi energy facilities targeted
The comments came after several energy facilities in Saudi Arabia’s southern region were targeted Tuesday, causing fires and temporarily disrupting some operations, according to the Saudi Press Agency, which cited an official source at the kingdom’s Ministry of Energy.
Oil prices were also approaching $100 a barrel, with Brent crude trading at $98.70 and West Texas Intermediate at $94.12 on Tuesday, according to Oil Price.
El Yamani said attacks on energy infrastructure, combined with risks around the Bab el-Mandeb Strait, could put additional pressure on global oil supplies.
A reduction in supply relative to demand could push crude prices higher, he said.
Given the uncertainty surrounding the conflict, El Yamani said it was impossible to determine the eventual impact on Moroccan fuel prices. He said diesel could potentially reach 18, 20 or even 25 dirhams per liter under more severe market conditions.
Morocco’s diesel prices
Moroccan diesel prices rose by 6 centimes per liter on Sept. 1, bringing pump prices above 15 dirhams in some cities amid higher transportation and distribution costs.
In Casablanca, diesel was selling at around 14.96 to 14.99 dirhams per liter.
Morocco liberalized fuel prices in 2015, ending state subsidies for gasoline and diesel and leaving pump prices exposed to fluctuations in international markets.
Any further increase in global oil and refined-product prices could therefore translate into higher costs for Moroccan consumers, depending on international prices, taxes, distribution costs and local margins.
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