Morocco Grapples with Soaring Oil Prices and Economic Challenges

Morocco is severely affected by the current economic situation in the world. Several factors explain this situation, which worries some observers, reports the newspaper Les Inspirations Eco.

The newspaper explains that the Brent oil price has exceeded the fateful $100 mark ($103.02) on Thursday, February 24. However, in the 2022 Finance Act, the government had based its calculations on a barrel of oil at $80. 55 days into its execution, the barrel is at $98.19, or already more than $18 more, which is a significant amount that will have to be found as soon as possible.

At the same time, the kingdom is facing an increase in transportation costs, which has led to supply delays. Added to this are the effects of the Russian-Ukrainian tension. Ukraine is indeed one of the strategic wheat suppliers to the kingdom, the daily recalls. An important commodity that the Kingdom absolutely needs, with the drought looming on the horizon. A rise in the price of natural gas is also to be feared following these escalations. Morocco is now a net importer following the closure of the Maghreb-Europe Gas Pipeline.

To address this, "the government must do everything in its power to ensure that the country’s supply from abroad is done properly. To do this, it is necessary to leverage partnerships with producer countries that are close," recommends among other things, the economist Ahmed Azirar.