Fuel prices started a downward trend in Morocco last June. A trend that will be confirmed in the coming days, according to our information.
After a drop of 64 cents per liter for diesel and about 11 cents for petrol, recently at Africa stations in Casablanca, good news awaits consumers.
If it is still too early to estimate the level of the expected decline, Mustafa Labrak, managing director of Energysium Consulting, is convinced that several factors point to a drop in the price of hydrocarbons by about 1 dirham per liter for diesel and 80 cents for the super. mid-August.
“This is still good news for the consumer, hoping to maintain this trend and international production as well,” hopes an energy expert whose fuel at service stations is affected by international prices for refined products, which have been declining since the end of June.
Indeed, the price of diesel has fallen from $1,400 per ton to currently $1,000 per ton. On the other hand, the dollar rose sharply during the same period from 9.88 dirhams in June to 10.32 dirhams today. However, while oil prices remained close to their low level, they rose slightly.
The Organization of Arab Petroleum Exporting Countries (OAPEC) is optimistic and expects in its latest report that crude oil prices will stabilize during the second half of the year between 90 and 100 dollars per barrel. But who has the right to reduce fuel prices in Morocco? The government does not interfere with prices and cannot impose them.
limits of executive power
The executive can only act by taxing lower rates, since any return to compensation is excluded. Even if he wanted to, bringing back fuel subsidies is already very heavy.
These days, it is estimated at 60 billion dirhams annually. Moreover, the Finance Minister recently specified that the priorities are elsewhere.
First, dealing with the increase in the burden of subsidized products such as sugar, butane gas, and flour and also targeted subsidies for carriers. This year, a subsidy was added to textbooks to avoid price increases and reduce the cost of the next school year.
Many social programs with an expected positive impact will also be launched, especially about health,” explains Mustafa Labrak. On the other hand, distributors are free to set prices as they see fit, and the hydrocarbon market is liberalized. However, the competition between operators is only capable of regulating prices to stay in the market.
In Morocco, petroleum products are priced at 61% of the fuel price which depends on the world market, while 31% consists of taxes and fees. Distribution cost and profit margins make up the remainder (8%).
As for the new decline in the future, everything indicates that it will be on the initiative of the leaders of the sector, who until now have been the source of the most significant declines.
A situation that can be easily explained. While according to the figures from the specialized website Global Petrol Price, Morocco is one of the countries in the world where gasoline is the most expensive, the first in North Africa, and the second in the Arab world, the head of the government that owns Africa.
, for prices at the pump. On social networks, hashtags abound calling for prices to be reduced to 8 dirhams per liter. Everything suggests that Aziz Akhannouch has understood the message.