Morocco: Fuel price reductions outpace cost decreases, Competition Council reports

Morocco’s Competition Council quarterly analysis of nine fuel distribution companies reveals price,margin,and tax revenue declines during the second quarter of 2025,highlighting persistent gaps between international cost reductions and domestic pricing adjustments.

The comprehensive monitoring system,established through transactional agreements between the Competition Council and distribution companies,provides essential economic transparency in a market where international petroleum fluctuations create delayed or uneven national price impacts.

Detailed biweekly analysis shows CIF quotations declined 0.73 dirhams per liter while retail pump prices decreased 0.82 dirhams per liter. International rates dropped from 5.61 to 4.87 dirhams per liter before stabilizing around 5.05 dirhams in June. Pump prices followed similar trajectories,falling from 11.20 to 10.67 dirhams per liter.

Weighted average purchase costs,incorporating refined product prices,freight,insurance,port fees,inventory variations,and taxes,declined from 8.58 dirhams per liter in early April to 7.76 dirhams by late June,averaging 8.09 dirhams quarterly. Transfer prices for partner stations,representing 80% of distributed volumes,evolved more cautiously between 9.58 and 9.13 dirhams per liter before rising slightly to 9.25 dirhams.

Quarterly average transfer prices settled at 9.31 dirhams per liter,declining significantly less than purchase costs. Diesel costs fell 0.98 dirhams per liter while transfer prices decreased only 0.47 dirhams. Gasoline showed similar patterns,with costs declining 0.61 dirhams versus 0.32 dirhams for transfer prices.

Gross margins remained remarkably stable compared to second quarter 2024. Diesel margins reached 1.17 dirhams per liter versus 1.21 dirhams previously,though rising progressively from 0.94 dirhams in early April to 1.46 dirhams by late June. Gasoline margins averaged 1.83 dirhams per liter,slightly above the previous year’s 1.79 dirhams.

Morocco imported 1.72 million tons of diesel and gasoline,up 4.2% compared to 2024,valued at 10.93 billion dirhams—a 22% decline reflecting favorable international conditions.