The Moroccan Competition Council has released its second quarterly report monitoring the compliance of nine fuel market companies with settlement agreements reached in November 2023.
The report reveals a 9.1% increase in diesel and gasoline import volume during the first quarter of 2024, reaching approximately 1.47 million tons, and a 0.9% uptick in value to 12.89 billion dirhams annually.
The number of companies licensed to import liquid petroleum products has grown to 29 by the end of March 2024. Diesel continues to dominate imports, accounting for roughly 91% of volume and value. The nine companies subject to the Council’s report maintained an approximately 87% share of the total import market in terms of both volume and value.
While these companies witnessed a 5% increase in import volume compared to the previous year, reaching 1.27 million tons, the import value declined by 3% to 11.21 billion dirhams.
The Council’s analysis of price correlation between international and domestic fuel prices indicates a general alignment, with some discrepancies, particularly for gasoline.
While distribution companies experienced a slight increase in purchase costs, this was significantly lower than the rise in international prices. Notably, these companies did not pass on this increased cost to consumers, but instead reduced the transfer price.
The Council attributes this to the short observation period and the market’s historical behavior of adjusting prices over time. Additionally, gross profit margins have declined, particularly since February, coinciding with the period when distribution companies did not increase selling prices.
Houssine El Yamani, Secretary-General of the National Union of Petroleum and Gas, criticized the report, arguing it downplays the role of the Samir refinery and legitimizes excessive hydrocarbon profits.
The Competition Council’s report is based on data from the Ministry of Energy Transition and Sustainable Development and includes commitments from the nine companies to provide quarterly reports on their activities.
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.