Morocco, which relies almost entirely on imports for its gas and oil needs, is facing a massive financial burden to shield consumers from soaring global energy prices. According to Minister of Budget Fouzi Lekjaa, the state is spending 3 billion dirhams (approximately $330 million) each month to subsidize fuel and gas imports.
This subsidy program aims to prevent a sharp increase in domestic prices that could hurt households and businesses. The North African kingdom has limited domestic energy resources and is heavily exposed to fluctuations in international oil and gas markets.
The government has not disclosed the total annual cost of the subsidies, but the monthly figure highlights the significant fiscal pressure. Morocco has been implementing reforms to reduce energy dependence, including investments in renewable energy, but remains vulnerable to global price shocks.
Economists warn that the subsidy program, while necessary in the short term, could strain public finances and delay broader economic reforms. The government is exploring ways to gradually phase out subsidies while protecting low-income households.
