Fuels: Reasons for rising prices
A real headache. The question of fuel prices is once again coming to the fore. Indeed, oil prices in service stations have posted since Thursday, June 01, a new increase. The price of a liter of gasoline increased by nearly 0.26 dirhams and that of diesel by 0.15 dirhams.
Yes, it is a slight increase, but any increase, even minimal, in the prices of diesel and gasoline impacts the costs of transport and production of almost all economic activities. The question that arises in this context is why this new price rise has taken place when global crude oil prices fell in May 2023 to an average of US$75 per barrel, a figure never reached since the peak of US$ 122.69 in June 2022. Why doesn’t the drop in the price of crude oil internationally have therefore an impact on the selling price on the domestic market?
“This increase is explained by two elements (mechanical effect), namely the average price of a barrel on the international scene over 15 days, and the exchange rate of the dollar to the Moroccan dirham”, explains an expert. Morocco fulfills its hydrocarbon needs through imports. The country is therefore subject to the repercussions of fluctuations in international prices. Thus, says the expert, any rise in the price of the dollar, even with a drop in the price of the brent, will impact prices at the pump.
The Secretary General of the National Trade Union of Petroleum and Gas Industries affiliated to CDT (Democratic Confederation of Labor), Houcine El Yamani, mentions other elements. “Since the closure of the Samir refinery, Morocco has been importing refined rather than crude petroleum products. The last few weeks have been marked by an increase in the prices of refined products on the international scene. For example, the price of diesel reached US$ 700 per ton due to a shortage of refined products. Demand exceeds supply. Refineries are unable to meet the needs of international demand”. The low refining capacity of the country thus led to a significant increase in the margin on this operation. The tax burden is also questioned.
Another element is the distributors’ profit margin. “After the liberalization of diesel and petrol prices since the end of 2015, distributors’ margins are no longer set by the Government. The margins have even increased”, says El Yamani. Consumers are thus subject to a triple burden.
Khadija SKALLI
