Anticipated Fuel Price Hikes Create Pressure on Moroccan Gas Stations
In recent days, fuel stations across various Moroccan cities have experienced significant pressure due to an unusually high influx of both professional and private vehicle owners rushing to fill up their tanks. This surge in demand is largely attributed to expectations of an imminent increase in fuel prices, set to take effect starting Monday. The anticipated hikes are seen in the context of ongoing impacts from the geopolitical tensions in the Middle East, particularly the so-called "Iran War," which has affected the prices of refined petroleum products on international markets.
Industry sources from the fuel distribution sector have noted that many service stations recorded a sharp rise in fuel demand from early morning on Saturday, especially from road transport professionals, taxi drivers, and private car users. This preemptive rush is a common behavior among vehicle operators who aim to mitigate the financial impact of forthcoming price increases. Reports suggest that some transportation companies and logistics firms have already begun to replenish their fuel tanks, while several industrial and service institutions have augmented their fuel reserves in anticipation of the price hikes.
The expected price increases are linked to a recent surge in refined petroleum prices on international markets, driven by ongoing fluctuations in global energy markets due to rising political and military tensions in the Middle East. These developments have raised concerns about the balance of the global oil market and supply chains. Specifically, the anticipated increase is expected to reach 1.60 dirhams per liter for diesel, the most consumed fuel, and 0.86 dirhams per liter for gasoline.
Prior to this situation, fuel prices had seen a notable decline towards the end of the previous year, with diesel prices dropping approximately 65 cents on December 30, and gasoline falling around 44 cents. This allowed the price of diesel to dip below the symbolic threshold of 10 dirhams per liter, stabilizing around 9.95 dirhams per liter at various stations, while gasoline prices were about 13.05 dirhams per liter. However, this downward trend has reversed since the beginning of March, with current prices reported at approximately 10.20 dirhams per liter for diesel and 13.30 dirhams per liter for premium unleaded gasoline, depending on the distribution brands in the market.
Fuel prices at the stations are determined by the distributors' pricing mechanisms, which are based on the Rotterdam market prices for diesel and gasoline. This pricing strategy is particularly relevant since Morocco solely imports refined products, following the shutdown of the "Samir" refinery in 2016. Consequently, the public often faces higher prices compared to the cost of crude oil per barrel.
As reported by hespress.com.
