Morocco sees fuel price relief as diesel drops below 11 Dirhams

Moroccan motorists received welcome relief Monday, September 1, as fuel prices declined for the second time in two weeks, with diesel falling below the psychologically significant 11-dirham threshold. Gasoline prices decreased by 16 cents per liter while diesel recorded a more substantial 30-cent reduction, offering respite to consumers amid economic pressures.

A morning survey conducted by Le360 across central Casablanca revealed diesel prices ranging from 10.74 dirhams per liter at OLA stations to 10.75 at Winxo and 10.78 at Afriquia outlets. Gasoline prices showed similar competitive positioning, with Winxo offering 12.75 dirhams per liter, OLA at 12.77, and Afriquia at 12.78 dirhams.

These reductions follow recent transparency measures by Morocco’s Competition Council, which disclosed distributor profit margins for the first time in July. The council’s analysis of 2024 financial performance indicators revealed average net margins of 2.9 percent across the fuel market, translating to 43 cents per liter for diesel and 61 cents for gasoline.

The current margin levels represent a significant increase from the 2022-2024 average of approximately 1 percent, which equated to 16 cents per liter for diesel and 31 cents for gasoline. This margin expansion has drawn scrutiny from consumer advocates questioning whether competitive pressures are functioning effectively in the petroleum distribution sector.

Market analysts attribute the price reductions to declining international crude oil prices and favorable exchange rates. However, questions persist about the relationship between global commodity movements and local pump prices, particularly given the disclosed margin structures. The fuel pricing mechanism remains a sensitive economic indicator affecting transportation costs, inflation calculations, and household budgets across Morocco.