Fuel prices in Morocco ease in May after weeks of sharp increases

Fuel prices in Morocco declined by around MAD 1 ($0.1) per litre in May, marking the first notable correction after weeks of consecutive increases that had pushed prices to record levels, Al Arabiya Business reported on May 5. 

The decline is attributed to a relative easing in global oil prices, alongside partial improvements in supply chains. These factors have reduced import costs and distribution margins under Morocco’s liberalised fuel pricing system, allowing domestic prices to adjust more quickly to international trends.

The price of both diesel and petrol dropped to around MAD 14.49 per litre, down from MAD 15.49 recorded mid-April. The earlier surge had been particularly striking due to the unusual convergence of diesel and petrol prices in the Moroccan market. The spikes at that time were driven by the closure of the Strait of Hormuz. They have placed severe pressure on the Moroccan budget due to rising transportation costs and the massive subsidies required to shield key industrial sectors from global energy volatility.

The recent drop follows a period of steep rises during March, when fuel prices increased cumulatively by about MAD 4.7 for diesel and MAD 3 for petrol. Prices had climbed rapidly from roughly MAD 10.80 and MAD 12.49 respectively to nearly MAD 15.50 within a short span, according to local reports.