Fuel Prices Expected to Remain Stable in Morocco During Ramadan

Towards a surge in fuel prices this Ramadan month coinciding with the beginning of March? Professionals in the fuel distribution sector through service stations have stated that they have not "received", until Saturday evening, any information indicating a change in pump prices. "The coincidence between the beginning of March - which usually constitutes, for professionals and motorists, the date of the bimonthly update of the final selling prices - means that the prices, stable until Saturday evening, remain at the same level as two weeks ago," said professional sources responsible for the National Federation of Owners, Merchants and Managers of Service Stations in Morocco, in statements to Hespress.

"So far, nothing has been confirmed regarding the steps taken by the actors in the fuel distribution sector and the import of petroleum and energy products as part of the bimonthly price update in force since the liberalization of the market; which leaves room for a widespread expectation at the beginning of each month, marked by the influence and contexts of the commercial policy specific to each company," added the same sources.

Since February 16, the selling price of a liter of diesel has slightly decreased. This decrease came after professionals at service stations in Morocco confirmed a decrease in the selling price of 12 cents per liter. Gasoline prices, on the other hand, have not seen any change. According to the latest price update (February 1), the selling price of diesel increased by about 16 cents, while that of a liter of gasoline rose by 20 cents.

Service station owners across the different regions of Morocco have explained that "stations do not control the increase or decrease in fuel prices, as they simply apply the recommendations received from the distribution companies, with the updates generally being uniform between these companies."

The increases in fuel prices in Morocco "have no connection" with the rise in prices at the international level, but rather with "the removal of the subsidy provided by the Compensation Fund, the liberalization of prices, the increase in distributors’ profit margins more than three times, in addition to the increase in refining margins and heavy taxation (more than 3.5 dirhams on diesel and more than 4.8 dirhams on gasoline)," specified the National Syndicate of Oil and Gas Industries at the end of February, stressing that "the profit margins of the actors in the sector have increased after the liberalization of prices at the end of 2015."