Energy ministry reports that Morocco has enough diesel to last for 51 days.
The 'energy' ministry announced on Thursday that Morocco, which is heavily dependent on imports, has enough diesel to last for 51 days or 55 days respectively, and that gas and coal supplies are?secured until the end of the month. The war in the Middle East has caused an unprecedented disruption in energy supplies, leading to record gains in crude oil prices. This is especially painful for Morocco because it has no refining capacity at home.
After the U.S.-Israeli attacks on Iran, which occurred at the end?of February, tensions in the region increased.
To maintain prices, the Moroccan government has reinstated diesel subsidies for taxis, trucks, and buses.
Diversifying the supply
Since 2015, Morocco is completely dependent on diesel and petrol imported from abroad after its sole refinery closed due to unpaid debts.
The energy ministry claimed that it has taken steps to minimize the economic damage.
The energy ministry said that "Morocco’s policy of diversifying its supply sources, including from Europe and the United States has helped to reduce the impact."
According to the Moroccan electricity regulator, coal accounts for 60% of Morocco’s electricity production. Natural gas is 10%, and wind and solar energy 25%.
The energy ministry reported that coal prices had also increased following the Gulf Conflict, but supplies were secured through the end of the month. Tenders will be released?in mid April to cover the third-quarter, it said.
It said that gas supplies were guaranteed until the end June. Gas consumption was reduced by 11% in the first quarter due to an increase in hydroelectric generation following rain-filled dams.
Morocco imports the majority of its gas through a pipeline which previously carried Algerian natural gas.
SUBSIDIES CAN DO ONLY SO MUCH
The government uses subsidies to try and 'curb prices. However, import, storage, and distribution of petroleum in Morocco are managed by private firms who respond to market forces.
She hasn't gone into detail, but she did publicly state that the Middle East situation would lead to inflation. The government's 2026 budget was built on the assumption that oil would cost $60 per barrel. This is far less than Brent crude, which traded at around $108 Thursday.
Last month, the central bank governor of Morocco said that if oil prices rise above $120 per barrel, Morocco can draw on a flexible credit line from the IMF worth $4.5 billion.
Morocco's energy exports will drop by 5%, to $11.5 billion. (Reporting and Editing by Louise Heavens, Barbara Lewis and Ahmed Eljechtimi)
(source: Reuters)
