Morocco: Fines Imposed on 9 Oil Companies for Anti-Competitive Practices

The Competition Council reported reaching agreements with these nine companies, putting an end to a case that stirred controversy in Morocco, involving a company owned by Prime Minister Aziz Akhannouch.

The agreements involve “the payment of a total amount of 1.84 billion dirhams as a settlement,” as per the Competition Council. They also include “a set of behavioral commitments undertaken by these companies and their professional organizations to improve the competitive performance of the fuel market in the future, preventing risks of harming competition to the benefit of consumers.”

In 2020, the Competition Authority reached an agreement with three dominant oil companies in the Moroccan market—Total, Afriquia, and Vivo Energy, the exclusive distributor of Shell in Morocco—imposing financial penalties. However, this action was never followed up.

Following the Russian-Ukrainian war in February 2022, which led to an increase in oil prices, the “Marocgate” case gained political traction. Afriquia, the leading company in Morocco’s fuel market, became a focal point as it is owned by the current Prime Minister, Aziz Akhannouch.

The Competition Council’s actions against the oil companies gained prominence against the backdrop of rising fuel prices globally. The case, initially focused on three companies, expanded to include additional firms operating in the Moroccan market.

Morocco, lacking oil resources, relies on importing all its petroleum products. After subsidizing fuel for an extended period, the country liberalized the sector in 2015, allowing fuel importers to determine fuel prices at gas stations.

Since then, fuel importers have significantly increased their profit margins. More importantly, prices have remained relatively unchanged from one station to another, leading to criticism and suspicion of price manipulation.

In 2018, a report submitted to a parliamentary committee stirred controversy regarding profit margins at the pump, estimating between 1.2 and 1.5 billion euros in excess profits since 2015.

As the third-largest distributor of petroleum products and services in the Arab region of Morocco, the company under scrutiny holds a market share of approximately 15%.