Morocco fuel subsidies to surge to $5 bln: ministry

Morocco will have to raise fuel subsidies to a record $5 billion this year from $3 billion in 2010 if oil prices remain in the $100 per barrel range, a senior energy ministry official said on Monday during a visit to London.

At near $100 per barrel, if it remains at this level for 2011, we forecast this will cost around $5 billion in subsidies, Said Laoufir told Reuters.

He also said that Morocco, the only north African country without oil production, is in discussions with investors about building the 200,000 barrel per day Jorf Lasfar refinery and that a final decision would be taken by the end of the year.