Fez – Global energy markets are entering a new period of pressure, with Morocco facing rising costs and structural limits as it works to shield its economy.
The World Bank expects energy prices to increase by 24% in 2026, citing supply disruptions and geopolitical tensions in the Middle East.
Brent crude is projected to average $86 per barrel, up from $69 in 2025, with recent spikes already exceeding $100.
Overall commodity prices are also set to rise, including fertilizers and key industrial metals.
The shock is linked to a sharp drop in global oil supply, estimated at 10 million barrels per day.
Tensions around the Strait of Hormuz, a critical route for global oil trade, have added volatility to markets.
This is expected to push inflation higher, especially in developing economies, where it could reach 5.1% in 2026.
For Morocco, the impact is immediate. The country imports more than 90% of its energy needs, making it highly exposed to global price shifts.
Domestic fuel prices have already increased, with diesel rising by around MAD 2 DH per liter and gasoline by MAD 1.43 DH.
According to Le360, Energy Minister Leila Benali has described the current situation as comparable to the major oil shocks of the 1970s, warning that the scale may be even greater.
Her approach focuses on limiting the impact on households while accelerating long-term investment.
The government has expanded subsidies to contain price increases.
Public support now costs around 1.6 billion dirhams per month.
Read also: Morocco Spends $160 Million Monthly to Curb Fuel Price Surge
Subsidies for butane gas have more than doubled, reflecting a growing burden on public finances.
This policy aligns with international advice to protect vulnerable groups while avoiding long-term fiscal strain.
However, it also highlights the difficult balance between immediate relief and budget sustainability.
Beyond prices, structural weaknesses remain.
Morocco’s fuel storage capacity covers less than two months of demand, with infrastructure heavily concentrated in port areas.
Recent disruptions in key industrial zones have exposed how quickly supply chains can be affected.
To address these risks, Morocco is increasing investment in renewable energy and infrastructure.
Spending on solar and wind projects has doubled since 2021, while investment in the electricity grid has grown fivefold.
In early 2026 alone, authorities approved 2.7 gigawatts of new capacity.
Renewables now account for 46% of installed electricity capacity, though their actual contribution remains lower due to seasonal variation.
The government aims to raise this share further by the end of the year.
At the same time, Morocco is working to strengthen its energy security.
Plans include expanding storage capacity to cover up to 80 days of demand and advancing strategic projects such as the Nigeria-Morocco gas pipeline.
The current crisis reflects a broader challenge.
Rising global prices are increasing import costs and putting pressure on public finances, while the need for investment continues to grow.
Official statements suggest Morocco’s response will depend on how effectively it can manage both short-term shocks and long-term transformation.
