Morocco’s Fuel Prices Remain High Despite Global Oil Price Drop

Despite a significant drop in crude oil prices, the kingdom ranks fourth among African countries with the highest prices, according to data relayed by the magazine Finances News Hebdo. On May 20, the liter of fuel cost $1.54 there, just behind the Central African Republic, Senegal, the Seychelles and Zimbabwe.

This paradoxical situation, where pump prices do not reflect the decline in world prices, is causing incomprehension and frustration among Moroccan consumers.

On the one hand, Morocco is heavily dependent on fuel imports. Unlike producing countries, it does not have domestic production to cushion international price shocks, the same source indicates.

On the other hand, taxation weighs heavily on pump prices. Indeed, 31% of the final price comes from taxes and duties, while the international market accounts for 61%. The distribution costs and the profit margin of the distributors complete the remaining 8%.

Added to this is the cost of refining, which does not necessarily follow the drop in crude oil. According to Finances News Hebdo, refining activity has declined worldwide, with investments having shifted more towards renewable energies.