The National Bureau of the National Union of Oil and Gas Industries issued a strongly worded statement criticizing the significant rise in fuel prices in Morocco, emphasizing that this increase is unrelated to international price hikes. The union described local prices as “obscene,” pointing to structural dysfunctions in the Moroccan market.
The statement explained that the sharp rise in fuel prices is primarily due to the elimination of subsidies from the Compensation Fund, the liberalization of the fuel market, and the increase in profit margins for distribution companies, which have more than tripled compared to previous levels. The union also highlighted rising refining margins and excessive taxation, with taxes exceeding 3.5 dirhams per liter for diesel and 4.8 dirhams per liter for gasoline.
The union leveled strong accusations against the Competition Council, accusing it of failing to fulfill its responsibilities in managing the fuel pricing issue. The statement noted that the council “overstepped its authority and intervened in areas outside its jurisdiction,” thereby deviating from its primary role as a guarantor of competition laws and consumer protection.
The statement added that the Competition Council “has become a defender of illegal practices, attempting to convince Moroccans to accept exorbitant prices, while the minimum conditions for competition in the market are absent.” The union stressed the need for the council to strictly enforce the law and defend citizens’ rights.
The union, affiliated with the Democratic Confederation of Labor (CDT), pointed out that the profit margins of fuel distribution companies have significantly increased since the liberalization of prices in 2015. According to the union’s estimates, the cumulative profits of these companies will reach nearly 80 billion dirhams by the end of 2024, at the expense of citizens’ purchasing power.
The union held the government primarily responsible for the current situation and called for a return to regulated fuel prices and the abolition of liberalization policies. It emphasized the need to implement Paragraph 2 of Article 2 of the Competition and Price Freedom Law to ensure legitimate profits for economic operators while preserving citizens’ purchasing power.
The union also demanded an immediate reduction in fuel prices in line with citizens’ income levels and the resumption of oil refining operations at the SAMIR refinery. It urged authorities to reduce the tax burden on the sector, harmonize taxes on diesel and gasoline, and establish a national agency to regulate the energy sector.
These demands come as part of the union’s efforts to mitigate the negative impact of rising fuel prices on the national economy and citizens’ purchasing power, amid significant fluctuations in global markets.