Soaring Fuel Prices in Morocco: A Crisis Rooted in Policy Failures, Not Global Markets

BY: Dr. Hana Saada

National Union of Petroleum and Gas Industries Condemns Government Mismanagement, Calls for Market Reforms and Consumer Protection

Algiers, Algeria | February 26th, 2025 — Amid mounting public outrage over the relentless surge in fuel prices, the National Union of Petroleum and Gas Industries in Morocco has categorically dismissed claims that the hikes are driven by international market fluctuations. Instead, the union has pointed the finger squarely at government policy failures, including the elimination of subsidies from the Compensation Fund, price liberalization, soaring distributor profit margins, and excessive taxation.

In a scathing statement, the union accused the Competition Council of abdicating its duty to ensure fair pricing and consumer protection, accusing that it has instead acted as a shield for monopolistic practices. “Rather than enforcing competition laws and safeguarding consumers—the most vulnerable stakeholders in this equation—the Council has assumed the role of a defense attorney for price-gouging entities, attempting to normalize the exorbitant cost of fuel in a market that is anything but competitive,” the statement declared.

According to the union, profit margins for fuel distributors have skyrocketed more than threefold since price liberalization was enacted at the end of 2015. This surge, it noted, has translated into an unprecedented financial windfall for industry players, evidenced by significant investment growth and robust financial performance. A 2018 parliamentary fact-finding mission revealed that these companies had amassed 17 billion dirhams in surplus profits. By the end of 2024, cumulative excessive profits—beyond those originally sanctioned by the state—are projected to exceed 80 billion dirhams.

The union did not mince words in attributing blame for the fuel crisis to the government, particularly the administration led by Prime Minister Aziz Akhannouch. It urged the government to invoke Article 2, Paragraph 2 of the Competition and Price Freedom Law to remove fuel from the list of deregulated commodities and reinstate price controls that balance fair profits for industry players with the economic realities faced by ordinary Moroccans.

Beyond pricing concerns, the union underscored the broader socio-economic risks posed by the current trajectory, warning that unchecked fuel inflation could destabilize the social fabric. “Maintaining public order in its modern sense and preserving social peace necessitate urgent intervention. The government must immediately reverse the deregulation of gasoline and diesel prices, revive domestic oil refining through the SAMIR refinery, ease the crushing tax burden, and establish a unified tax rate for diesel and gasoline,” the statement asserted.

Furthermore, the union advocated for the establishment of a National Energy Regulation Agency to oversee and restructure the sector, ensuring transparency and fair competition.

 

 

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