Morocco Fuel Prices: Taxes Make Up 37% of Pump Price
A strategic report finds Morocco has no fuel shortage, but taxes make up over 37% of the pump price, with a stagflation warning if prices cross 15 MAD per liter.
A strategic report published by the Institute of Social and Media Studies says Morocco has no real fuel shortage, and that its ports absorb shipments efficiently. The real problem, according to the report, which analyzes maritime traffic flows and the Kingdom's energy security indicators, lies in the cost and how it is passed on to consumers, with continued price rises risking pushing the national economy into stagflation.
What makes up the price of a liter of fuel?
The report breaks down the reference equilibrium price of 13.38 MAD per liter, showing that more than a third of that price goes straight to taxes.
| Component | Share of price | Approximate value per liter |
|---|---|---|
| International purchase and delivery | 56.0% | 7.50 MAD |
| Internal consumption tax (TIC) | 28.1% | 3.76 MAD (fixed amount) |
| Value-added tax (VAT) | 9.1% | Variable, depending on import cost |
| Distribution and logistics margins | 6.8% | — |
Warning of "stagflation" past 15 MAD
Field studies cited in the report indicate that a pump price crossing the 15 MAD threshold could push the economy toward "stagflation." According to an earlier survey, 93.3% of respondents said they had to cut spending on food, healthcare, or education. Rising transport costs also drove food prices up by more than 1.4% in some cities, a phenomenon the report calls "logistical inflation."
The idle Samir refinery behind Morocco's import dependence
The report attributes much of the problem to the forced shutdown of the Samir refinery in Mohammedia, which has left Morocco dependent on foreign markets to cover 94% of its refined petroleum imports, with an import bill exceeding 120 billion MAD a year.
By contrast, the Kingdom's fuel berths are operating at full capacity: Tanger Med port remains the main hub for imports and re-exports thanks to its deep-water berths, while Mohammedia port handles direct distribution to users in the central region, after hydrocarbon traffic was moved out of Casablanca's commercial port for preventive and environmental reasons. Jorf Lasfar port supplies the phosphate complex and power plants, while Agadir port secures supply for the Souss-Massa region and the southern provinces.
The report's recommendations to ease the burden on consumers
The report recommends resolving the Samir file to restore national refining capacity and cover 65% of domestic demand, activating a "flexible tax" mechanism providing an exceptional cut to the internal consumption tax whenever oil prices exceed $85 a barrel, capping distributors' margins during sharp price increases, and speeding up development of the Nador West Med port to add more than 25 million tonnes of strategic storage by the end of 2026. It also notes that hybrid and electric vehicles now make up 12.5% of the Moroccan market, and calls for expanding direct financial support to transport-sector workers.