Morocco, which depends heavily on energy imports, currently holds enough diesel and petrol to cover 51 and 55 days of consumption, respectively, according to the energy ministry’s announcement on Thursday.
Coal and natural gas supplies are secured through the end of June. The ongoing Middle East conflict has put added pressure on the country, as global crude prices reached record monthly highs in March. Morocco lacks domestic refining facilities, making it fully dependent on imports for petroleum products.
Fuel retailers increased diesel and petrol prices by roughly 30% following U.S. and Israeli strikes on Iran at the end of February, which escalated regional tensions, according to a Reuters report.
Although Morocco eliminated diesel subsidies in 2014, the government reinstated support for professional transport sectors including taxis, buses, and trucks to help stabilize fuel costs.
Reliance on Imports and Diversification Efforts
Since 2015, Morocco has imported all its diesel and petrol following the closure of its only refinery, which went into liquidation over unpaid debts. The energy ministry noted that strategies to diversify supply, especially from Europe and the U.S., have helped reduce vulnerability to international market shocks.
Coal, which accounts for approximately 60% of the country’s electricity generation, along with gas and renewable energy, is secured in the short term. Coal and gas inventories are guaranteed until June, with tenders for third-quarter needs scheduled for mid-April.
Gas consumption dropped 11% in the first quarter, aided by higher hydroelectric output due to heavy rainfall. The majority of Morocco’s gas is imported via Spanish LNG terminals, using a pipeline that previously transported Algerian gas.
Even with subsidies offering partial relief, petroleum imports, storage, and distribution remain largely market-driven, limiting government influence over pricing. Morocco’s 2026 budget assumed an oil price of $60 per barrel, well below the Brent crude price of around $108 on Thursday.
If global oil prices exceed $120 per barrel, Morocco could tap a $4.5 billion flexible credit line from the IMF. Energy imports fell 5% to $11.5 billion in 2025, reflecting measures to control costs amid a volatile global energy environment.