Morocco fuel prices expected to rise amid sustained global energy pressures

Fuel prices in Morocco are likely to continue increasing as international energy markets remain under pressure from geopolitical conflicts and disruptions to global fuel supplies. The latest developments are expected to influence domestic fuel costs during the coming weeks.

International oil markets have been affected by the prolonged Russia-Ukraine war and renewed instability in the Middle East, including disruptions linked to the Strait of Hormuz and attacks targeting refining infrastructure. These events have intensified concerns over fuel availability despite relatively stable crude oil production.

Market analysts say refined petroleum products have experienced stronger price increases than crude oil itself because refining capacity remains limited and fuel exports have been disrupted. The International Energy Agency reported that refining margins and diesel crack spreads reached their highest levels in four years during July as product markets tightened.

Reuters also reported that diesel refining margins in Europe climbed to record highs in July. Refinery outages in both the Middle East and Russia reduced available supplies, contributing to higher retail fuel prices across several international markets.

These global developments have already been reflected in Morocco’s domestic pricing adjustments. During the latest biweekly revision in mid-July, diesel prices increased by approximately MAD 0.69 per liter, bringing the national average to about MAD 13.30 per liter, according to local industry figures cited by Moroccan media.

According to several reports, Houcine El Yamani, secretary-general of the National Petroleum and Gas Union and president of the National Front to Save SAMIR, said diesel prices on international markets rose from approximately MAD 7.5 per liter during the first half of July to around MAD 9.4 per liter in the second half of the month, representing an increase exceeding 25%.

Based on Morocco’s fuel pricing formula that existed before market liberalization, El Yamani estimates diesel prices could reach MAD 14.20 per liter during the first half of August. He also renewed calls to end fuel price liberalization, restart operations at the Mohammedia refinery, reduce fuel taxation, and reinforce Morocco’s strategic fuel reserves.