Moroccan Fuel Prices Surge Despite Global Oil Drop, Government Cites Dollar Strength

Speaking at the press conference held after the Council of Government, Mustapha Baitas tried to explain the continued rise in fuel prices in Morocco, first recalling that the kingdom is not an oil-producing country, and that the price of fuel depends on the international situation.

According to Baitas, several components determine the fuel prices at the pump. Even if the price of a barrel of oil has fallen, below $99 internationally before rising again to $107, the rise in the value of the dollar also affects import prices.

Three other factors also determine the price of fuel. These are: the international price at 61%, taxes at 31% (excise tax, VAT, etc.), and the distribution margin which constitutes 4%. In this regard, the official stated that: "the taxes imposed in Morocco are very low compared to those imposed in European countries for example", adding that the taxes have not changed, and that thus, it is the prices at the international level that determine the current prices.

However, service stations should ensure that the decreases are applied directly, as this is a matter of citizens’ purchasing power, he concluded. The one-dirham drop observed at the end of last week is considered insufficient by users, especially since several distributors did not immediately apply the new prices.