Agadir – Morocco to witness a significant raise in fuel costs starting Monday, March 16, with diesel and gasoline costs registering a sharp increase.
The hike in costs is set to reach, with diesel an increase of MAD 2 per liter and super unleaded gasoline registering an increase of MAD 1.44 per liter.
This latest hike followed a smaller hike in early March, when fuel prices increased by 25 centimes per liter.
As a result of the latest hike, the price of diesel is likely to approach MAD 12.20 per liter compared to about MAD 10.20.
Super unleaded gasoline is set to approach MAD 14.74 per liter compared to MAD 13.30, with slight variations in the prices of the fuels depending on the various service stations and distribution networks.
The increase is a result of the ongoing volatility in world energy markets, which has been affected by geopolitical tensions in the Middle East, as well as disruptions to key shipping lanes such as the Hormuz strait, which is a vital shipping route for world energy markets.
These issues have had a ripple effect on world petroleum markets, driving prices upwards, which has a direct impact on local prices.
The local price of fuels is directly linked to international prices of refined petroleum products. This means that any changes to world markets, including issues such as conflicts or sanctions, are reflected locally.
The rise of fuel prices has further economic implications. One of which is on logistics, resulting in increased transportation costs as well as the prices of various goods and services.
This is likely to put further pressure on the general population, especially Moroccan families who might struggle because of inflationary trends.
