Moroccan Fuel Prices Surge Above Pre-Liberalization Levels

According to this former formula, the liter of diesel should not exceed 9.73 dirhams and that of gasoline would be capped at 11.12 dirhams for the period concerned. However, the rates observed at the service stations are around 11 dirhams for diesel and 13 dirhams for gasoline. This is therefore a gap of more than two dirhams that is incomprehensible for many Moroccans.

The analysis of this situation is notably carried out by El Houssine Elyamani, general secretary of the National Petroleum and Gas Union (SNPG) and president of the National Front for the Safeguarding of the Moroccan Oil Refinery (FNSSRP). He considers that the deregulation of the sector has not led to a competitive market. "The Moroccan hydrocarbon market is neither competitive nor balanced. A handful of operators appropriate the bulk of the storage and import infrastructure, locking up the entire supply chain," he says. According to him, this market configuration allows a small number of players to maintain significant profit margins.

This pricing situation has direct consequences on household budgets, particularly those with limited incomes, for whom the rise in transportation costs significantly weighs on purchasing power. Faced with this observation, several organizations are making demands to modify the current framework.

Among the proposed solutions are the abandonment of price liberalization and a return to state regulation. The reactivation of the only national refinery, which has been shut down since 2015, is also recommended. Other proposals concern a revision of the taxation applied to hydrocarbons as well as better management of the costs related to imports and distribution, in order to moderate the evolution of consumer prices.