Morocco’s Fuel Prices Soar: Industry Calls for Government Action

The rise in diesel prices has reached, for the first time, 1 DH, due in particular to the volatility of crude oil prices, accentuated by the war in Ukraine, reports L’Économiste. This has prompted reactions from organizations of service station owners and managers. The National Federation of Service Station Owners and Managers is calling on the government to conduct "serious reflections and take concrete measures", in the direction of a new policy in terms of hydrocarbon supply management, the strategic security stock... This policy must not compromise the financial balances. "For years, we had warned against this kind of situation, deplored Houcine El Yamani, SG of the National Union of Oil and Gas under the CDT. The liberalization of the sector took place at a time when the barrel cost $50 to $60. Today, the barrel exceeds $100. As a result, the impact is increasingly important on the consumer."

To fight against the surge in fuel prices, this union calls for the immediate return "of the state subsidy on fuel for the benefit of all consumers" and recommends amendments in the direction of a return to the structure of the selling prices of petroleum products. The National Union of Oil and Gas also calls for the "immediate reactivation of refining within Samir or the use of the full storage and processing capacities of the Mohammedia refinery". The suspension of the activity of the country’s only refinery has led to a significant drop in petroleum product stocks, with the difficulty of controlling and ensuring the quality and flow of supply, he specified. According to Mustapha Baitas, government spokesman, the resumption of Samir’s refining and storage activities cannot be considered, as the refinery "is the subject of a judicial liquidation procedure. The government will interact according to the court decisions".

Other service station owners and managers have called on the State to reconsider the tax rates on hydrocarbons, in particular VAT and the domestic consumption tax, while summoning the distributors to considerably reduce their "still excessive and disproportionate" profit margins. On this issue, the government spokesman explained that the price of diesel does not include profit margins or taxes (NDLR: domestic consumption tax and VAT).