Petroleum Products: The Competition Council Strengthens its Monitoring Mechanisms

This decision comes in line with its missions of monitoring and ensuring the proper competitive functioning of markets, particularly following a rapid and significant increase in prices observed in petroleum markets and those of petroleum-derived products (refined products, plastics, etc.), the Competition Council stated in a press release.

The current international context, marked by escalating geopolitical tensions in the Middle East and the military actions accompanying them, is resulting in significant disruptions to global supply chains, the same source added.

In this regard, Morocco, as an importer of liquid petroleum products—particularly diesel and gasoline, which account for a predominant share of national energy consumption—remains “highly” exposed to these international fluctuations.

The same applies to certain petroleum-derived products such as plastics, which are used across a wide range of economic sectors, the statement noted.

Thus, as part of the implementation of the commitments undertaken by wholesale fuel distributors concerned by the settlement agreement concluded with the Competition Council—which provides for regular monitoring of the fuel market, particularly the evolution of prices on international markets and how they are transmitted to the national market—the Council met with the aforementioned operators.

Following these meetings, an explanatory note will be published on the Competition Council’s website.

In this context, the Council recalls that, within a framework of effective competition, price developments in the national market must reflect, in a proportionate manner and within reasonable timeframes, the changes observed in international markets, while taking into account constraints related to supply and storage.

In light of the particular tensions observed in global supply of these products, the institution will maintain close and regular monitoring of the national fuel market.

To this end, the monitoring frequency will be exceptionally revised, shifting from a quarterly review to monthly monitoring, focusing on diesel and gasoline prices at various stages of supply and distribution.

With regard to other sectors of activity, beyond hydrocarbons, the Competition Council will remain particularly vigilant regarding any unjustified price fluctuations, any undue increase in margins linked to the current context, as well as any signs of collusion, coordination between operators, abuse of dominant position, or any other practices likely to distort the free play of competition in the national market.

To this effect, any developments in prices or margins deemed disproportionate in relation to international benchmarks or objectively incurred costs will be subject to careful examination, including within the framework of annual reporting on the financial results of operators in the concerned sectors, the statement emphasized.

Through this reinforced monitoring mechanism, the Council aims to ensure market transparency, guarantee their proper competitive functioning, and protect consumers’ interests against any unjustified price increases.