Morocco/Gasoil and Gasoline: Pump prices are not directly linked to the price of a barrel of crude oil (Competition Council)

Morocco/Gasoil and Gasoline: Pump prices are not directly linked to the price of a barrel of crude oil (Competition Council)
Morocco/Gasoil and Gasoline: Pump prices are not directly linked to the price of a barrel of crude oil (Competition Council)

Thus, the sale prices of diesel and gasoline of the nine wholesale distribution companies concerned by the reporting of the Competition Council recorded, in the 2nd quarter of 2024, levels of reductions almost similar to those of the costs of purchase.

“Operators have passed on almost all of the reductions in purchasing costs to their transfer prices applied at the national level, the average variation in transfer prices being around -0.66 DH/L for diesel and -0.33 DH/L for gasoline, levels of reductions almost similar to those observed in the purchasing costs of the distribution companies concerned, i.e. -0.71 DH/L for diesel and -0, 21 DH/L for gasoline,” adds the same source.

The average purchasing cost used in this analysis includes the purchasing cost weighted for inventory variations, encompassing the purchase price of imported refined products (including costs linked to exchange rate fluctuations), as well as other transport costs to national ports, such as freight, insurance, approach and unloading costs, storage costs, internal consumption tax (TIC) and value added tax ( VAT) applicable to the importation of diesel and gasoline, reports the same source.

As for the transfer prices calculated, they correspond to the transfer prices (excluding taxes) applied by the nine companies to freely managed service stations. This choice is explained by the fact that the majority of diesel and gasoline sales (around 72%) are made through these stations.

The companies apply transfer prices and the owners or free managers then set the final selling price at the pump by applying a retail margin.

The average purchase cost and transfer price were weighted according to their respective weight in the importation and distribution of diesel and gasoline.

Thus, the weighted average purchasing cost of the nine operators for Q2-2024 reached 9.9 DH/L for diesel, with a minimum of 9.49 DH/L recorded in the 2nd half of June and a maximum of 10.18 DH/L in the 2nd half of April.

For gasoline, the weighted average purchasing cost is 11.25 DH/L, with a minimum of 10.87 DH/L and a maximum of 11.48 DH/L. The average market sale price stood at 11.13 DH/L for diesel and 13.04 DH/L for gasoline.

In terms of trend, after a slight increase between the 1st and 2nd half of April, the CIF quotation, the purchase cost and the sale price of diesel fell into a downward trend.

The purchase cost increased from 10.20 DH/L to 9.49 DH/L between the start and end of the 2nd quarter of 2024, a drop of 0.71 DH/L, while the sale price is went from 11.43 DH/L to 10.77 DH/L during the same period, a decrease of 0.66 DH/L

In the case of gasoline, the three variables experienced the same trajectory as that recorded for diesel, with a relative increase during the month of April and a downward trend during the rest of the 2nd quarter.

In fact, the purchase cost increased from 11.08 DH/L to 10.87 DH/L (difference of 0.21 DH/L) and the transfer price increased from 13.11 DH/L to 12. 78 DH/L (difference of 0.33 DH/L) between the start and end of the 2nd quarter of 2024.

During the 2nd quarter of 2024, the market was characterized by downward trends in three variables (CIF quotes, purchase costs and transfer prices), although with some differences in the levels of variations.

Indeed, CIF quotations recorded declines relatively greater than those in purchasing costs, i.e. a difference of around 0.27 DH/L for diesel and 0.66 DH/L for gasoline.

Please remember that the distribution of this third reporting is part of the monitoring of the execution of the commitments made by nine companies active in the diesel and gasoline market, concerned by the transaction agreements concluded with the Council of the competition.

The commitments indicated in the decisions relating to these transaction agreements are seven in number, including in particular the one covered in this report, which consists of the communication, by each of the companies concerned, of a quarterly report allowing the monitoring of the activity supply, storage and distribution of diesel and gasoline.

-

-

PREV “Well-being” wins the Grand Prize for American Literature
NEXT We lose a part of ourselves every day in Gaza