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Rabat – Morocco’s imports of diesel and gasoline experienced a significant decline in 2023, reaching approximately MAD 52.7 billion ($5.1 billion) and marking a substantial 21.5% decrease compared to the previous year.
According to a report from the country’s Competition Council, last year’s decrease in imports was primarily due to the downward trend in international prices of refined fuels, with diesel, the primary fuel imported into Morocco, taking the biggest hit.
From a fiscal perspective, tax revenues generated from these fuels also experienced a slight downturn. The Domestic Consumption Tax (TIC) generated approximately MAD 18.34 billion ($1.7 billion) in 2023, while Value Added Tax (VAT) revenues dropped from MAD 8.61 billion ($ 855 million) in 2022 to MAD 7.23 billion ($718 million) in 2023.
The report shows that the Moroccan market saw the entry of six new operators between 2022 and 2023, resulting in a noticeable decline in market share for the nine existing companies. Their collective market share decreased by 3.6 percentage points, falling from nearly 92.6% to approximately 89% in 2023.
To address the market shifts, the Competition Council brokered transaction agreements with nine companies in the sector in November 2023.
The agreements aim to enhance the competitiveness of the hydrocarbon market by implementing behavioral commitments and mandating quarterly reporting on the supply, storage, and distribution activities of diesel and gasoline.
In November 2023, the nine fuel companies operating in the fuel market in Morocco were fined $180 million in a settlement of an antitrust lawsuit leveled by the Competition Council.
The fines were imposed after the company failed to comply with free competition rules, including price fixing – a practice whereby two companies or more artificially determine the price of a commodity or a service.
Read Also: Morocco’s Competition Council Fines Fuel Companies $180 Million
