Lower fuel prices, yes but... can do better

Fuel prices have been revised downwards for the second half of August at most distributors. They even fell below the 14 dirhams mark for a liter of diesel, a decrease, to each his “greed”, which varies from 50 cts to 1 dirham. As to price of a liter of gasoline is between 0.35 and 0.75 cts of the dirham which at the pump comes to the lowest price at 14.68 dhs and more than 15 dhs, it is of course according to…

In history, it is the Afriquia service stations that remain the least expensive a priori, followed by Shell and Total stations. It goes without saying that the further you go from the reference city Mohammedia, the higher the prices rise. This new announced decrease in prices at the pump is based on the drop in oil prices on the international market. The barrel of Brent from the North Sea traded on Monday August 15, 2022 at 93.77 dollars (-4.46%), the barrel of American West Texas Intermediate (WTI) traded at 87, $81 (4.28%).

That being said, the reduction in prices is certainly confirmed, but fuel of whatever nature remains very expensive for the citizen’s pocket, all the more so since this has repercussions on purchasing power and therefore on that of the basket of the household.

However, the drop on Monday August 15, 2022 (effective from midnight Tuesday) remains insignificant in view of oil prices which continue to plummet. On the consolation side, as the fable would say “let’s not be so picky and let’s be careful not to disdain anything”, it is somewhere good news for the motorist, trucker and other energy guzzlers among fuel consumers with the hope of well understood that it tends towards this perspective of reduction.

On the other hand, it is true that the exponential increase in the dollar (currently at 10.33 dhs) has a lot to do with it as well in our little energy miseries that began, we recall, stirring the knife in the wound , at the beginning of last February, when diesel exceeded the symbolic bar of 10 dirhams per liter and gasoline that of 12 dirhams.

Unheard of (50% in 4 months). Since then, it has continued to increase and reached its peak last June with prices per liter at at least 15.65 dirhams for diesel and 17.80 dirhams for gasoline. That said, oil prices are expected to stabilize between $90 and $100, according to oil exporters, by the end of the year, suggesting further declines.

According to data from the Global Petrol Price website, Morocco is one of the countries in the world where gasoline is the most expensive, the first in North Africa, and the second in the Arab world. Also, in the face of the Executive’s refusal to act on lowering prices at the pump, which only operators are authorized to do, the government has instead opted for social measures (“measurements” for bad language) in order to support this increase and cushion the impact of these increases on the purchasing power of certain Moroccan families.

Indeed, the Government had launched last April a direct subsidy ranging from 1,000 to 7,000 dirhams per month for 180,000 professional transport vehicles, which a priori was not to everyone’s taste. In Morocco, the price of petroleum products, it is said, is based on 61% of the price of fuels which depends on the international market, while 31% is made up of taxes and royalties. Distribution costs and profit margins make up the rest (8%).

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