Moroccan Competition Council Reveals Second Report on Profit Margins in Fuel Sector

The Moroccan Competition Council has published its second report on the gross commercial margins of fuel distributors in Morocco for the first quarter of 2024, as part of the agreement with the sector.

Key points from the report:

1. The report included an analysis of commitments made by nine diesel and gasoline distribution companies.
2. The analysis revealed that changes in international prices were not always immediately reflected in national selling prices.
3. Purchase costs saw a marginal increase for diesel, while selling prices decreased, indicating partial absorption of cost increases by distributors.
4. Diesel and gasoline sales reached about 1.7 billion liters, an increase of 4.6% compared to the previous year.
5. Turnover reached 18.98 billion dirhams, representing an increase of nearly 1% compared to the first quarter of 2023.
6. Diesel dominated sales with an 86% share in volume and 85% in value.
7. Service stations accounted for about 70% of total sales volume, while the business-to-business sector represented the remaining 30%.
8. This quarter was marked by an increase in diesel and gasoline imports.
9. Average gross margins for diesel ranged between 1.24 and 1.69 dirhams per liter, and for gasoline between 1.76 and 2.26 dirhams per liter.
10. A general decrease in gross margins was observed, especially since February 2024, due to increased purchase costs not being reflected in selling prices.

This report highlights the importance of closely monitoring distributors’ practices to ensure a fair and competitive market in Morocco’s fuel sector.