Hedging — essentially a financial insurance mechanism — allows states and companies to lock in future purchase prices through instruments such as futures contracts and options, insulating themselves from unpredictable market swings. The outcome was costly: prices subsequently fell, and the state paid nearly $70 million for protection it ultimately did not need. Fuel market liberalization has transferred import responsibility to private operators, largely removing public finances from direct exposure to crude price fluctuations. Private sector hedging practice remains uneven. By contrast, flour millers routinely hedge against grain price swings, ONEE covers its LNG and coal exposure, and airlines including Royal Air Maroc manage fuel costs through currency and commodity hedging strategies.

Source: The North Africa Journal March 15, 2026 00:19 UTC