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Rabat – Morocco’s long-running debate over the future of the country’s only oil refinery has returned to the spotlight after parliament rejected proposals to nationalize the assets of the SAMIR refinery and regulate fuel prices.
The proposals, submitted by lawmakers from the Democratic Confederation of Labor (CDT), were voted down on June 16 by the House of Councillors, with 29 votes against and 10 in favor. The decision came just days after the bills had received approval in a parliamentary finance committee, which reflects divisions over the future of the refinery.
The vote has revived questions about the economic impact of SAMIR’s closure in August 2015 and whether Morocco can continue to rely entirely on imported refined fuel.
A recent white paper titled “SAMIR Under the Test of Hormuz” by consulting firm Vivae Capital estimates that the refinery’s shutdown has cost Morocco nearly MAD 197 billion ($19.7 billion) over the past decade.
Energy dependence debate
According to the report, the total includes MAD 114 billion ($11.4 billion) in energy-related costs, MAD 29 billion ($2.9 billion) in government compensation spending, and MAD 54 billion ($5.4 billion) in lost industrial value.
The study argues that the closure did not reduce Morocco’s demand for fuel. Instead, it shifted the refining process abroad. Rather than importing crude oil and refining it locally, Morocco now imports finished petroleum products, allowing foreign refineries to capture the value added by processing the fuel.
Morocco’s energy import bill reached MAD 114 billion ($11.4 billion) in 2024, despite falling by 6.5% compared to the previous year. While this figure does not directly measure the cost of SAMIR’s closure, analysts say it illustrates the country’s dependence on foreign energy supplies.
“Morocco’s full reliance on imported refined petroleum products since the 2015 shutdown of the SAMIR refinery has created a hidden economic cost. Over the past decade, an estimated MAD 54 billion ($5.4 billion) in refining margins has been captured abroad, representing value that would otherwise have been generated domestically,” said Amine Belkeziz, Vivae Capital CEO.
In addition, disruptions in supply chains linked to the Strait of Hormuz closure and alternative trade routes have shown how quickly external shocks can affect key sectors, even in countries not directly involved in conflict.
The report also indicates the continued burden of energy subsidies. Government compensation spending reached MAD 16.5 billion ($1.65 billion) in 2025 and is projected at MAD 13.8 billion ($1.38 billion) in the 2026 budget. Butane gas alone accounts for between MAD 12 billion ($1.2 billion) and MAD 13 billion ($1.3 billion) in annual support.
Union protest call
Meanwhile, the Democratic Confederation of Labor (CDT) has announced a national protest march scheduled for 28 June in Casablanca, escalating its ongoing confrontation with the government over rising living costs and deteriorating social conditions.
The union is calling on workers, retirees, unemployed youth, and citizens to mobilize against what it describes as a continued erosion of purchasing power, rising unemployment, and insufficient government response to long-standing socio-economic grievances.
Alongside demands for wage increases in both public and private sectors, the CDT is also calling for higher and unified minimum wages, tax relief, improved pensions, stronger protection of labour rights, and the implementation of previous social dialogue commitments. The union further insists on safeguarding union freedoms and opposing pension reforms it argues place disproportionate pressure on salaried workers.
Among its key demands is the revival of the SAMIR refinery, which it says remains central to Morocco’s energy security and industrial sovereignty.
SAMIR refers to Morocco’s only oil refinery, located in Mohammedia. It was shut down in 2015 after entering financial distress and bankruptcy proceedings, largely linked to heavy debt burdens, accumulated losses, and disputes over taxes and fuel pricing structures following market liberalization.
Since its closure, Morocco has fully depended on imported refined petroleum products, a situation that has periodically sparked debate over energy sovereignty, fuel prices, and industrial policy. The refinery has remained inactive despite repeated calls from unions and political actors for its rehabilitation or nationalization.
