Costs of energy to hit record high this year, as consumption rises

Costs of energy in Morocco are set to reach a record high by the end of the year and amount to over 100 billion dirhams due to a rise in global fuel prices.

The energy bill at the end of last July amounted to about 88.1 billion dirhams, compared to 38 billion dirhams in the same period last year. This represents an increase of about 130 percent, according to recent reports by the Exchange Office.

Energy imports cost Morocco last year about 75.6 billion dirhams and about 49 billion dirhams in 2020 when fuel prices fell significantly as a result of weak demand.

In 2019, energy costs amounted to about 76 billion dirhams, and 82 billion dirhams in 2018, according to the statistics of the Exchange Office for the past years.

By the end of July 2022, the energy bill reached MAD 88,114 million.

This rise comes as a result of the increase in purchases of the main energy products, mainly gas-oil and fuel-oil (MAD +23.733 million).

Fuel prices have more than doubled (MAD 9.990/T, up compared to MAD 4.826/T).

The imported quantities also increased by 9.4%.

The rise of costs is also met with a rise in consumption, which in the first half of the year witnessed an increase of 11%, compared to the same period in 2021.

Demand for electric energy in Morocco increased at an annual rate of up to 4% during the period from 2009 to 2021.

The demand for electric energy during the first half of 2022 increased by 5% compared to the same period in 2021, said the same source.

Morocco is currently working on the implementation of new projects for the production of electric power, with a power of about 6 gigawatts.