Moroccan small business group slams fuel price hikes, urges urgent government action

The Moroccan Confederation of Very Small, Small and Medium Enterpriseson accused fuel companies of unfair price hikes and called for immediate government intervention, warning that thousands of businesses are at risk of collapse.

In a statement released today, the confederation said recent increases in fuel prices are being driven by “abusive and anti-competitive practices,” not real supply costs.

The group said companies are using rising tensions in the Middle East as a pretext to raise prices, even though current fuel stocks were purchased earlier at lower prices.

“They are selling fuel bought cheaply at prices that reflect costs they never paid,” the statement said.

The confederation also accused fuel operators of failing to meet legal requirements to maintain 60 days of fuel reserves. Instead, it said, companies currently hold only about 30 days of stock, much of it acquired before recent global price increases.

The group pointed to events on March 15 and 16 as evidence of what it called widespread market abuse.

Many gas stations raised prices by about MAD 2 per liter ahead of any official change. Others reportedly closed overnight, refusing to sell fuel at existing prices, then reopened the next day with higher rates.

Only a small number of stations followed the rules, the group said.

The confederation said that such practices are not new. It said fuel companies quickly pass on price increases during crises but reduce prices only slightly when global markets stabilize. This imbalance, it said, is hurting small businesses already struggling with rising costs.

Higher fuel prices are driving up transportation, raw material and operating costs, forcing businesses to raise prices and weakening consumer demand, the group said.

The warning comes after years of economic strain. The confederation cited the COVID-19 pandemic, prolonged drought, global supply disruptions linked to the war in Ukraine, and persistent inflation.

More than 150,000 businesses have closed over the past four years, it said, with small firms making up 99% of bankruptcies.

The group warned that more than 60,000 businesses could fail in 2026 alone if no action is taken.

It also raised concerns about a conflict of interest, noting that a major shareholder in the fuel sector currently heads the government. This, it said, contributes to a lack of oversight and accountability.

The confederation called on authorities to regulate fuel prices based on actual costs, audit fuel stock levels, and launch financial support programs for small businesses. It also urged the competition council to investigate pricing practices across key sectors.