This opinion follows the decision of the Conseil de la concurrence no. of raw materials at the global level on the competitive functioning of national markets, in particular energy products.
This decision comes at a time when the selling prices of fuels (diesel and gasoline) at the pump on the national market reached record levels during the first months of 2022.
Thus, the main objective assigned to this opinion is, first of all, to answer the question of whether the increases in the selling prices of diesel and gasoline on the national market are or are not correlated with the prices and quotations for these materials on the world market and, secondly and depending on the answers obtained, to analyze the impact of these increases on the competitive situation in the markets concerned.
The diagnosis carried out and the analysis of the competitive functioning of the markets for these products, the structure of their selling prices, the margins achieved by the operators active on these markets, as well as their profitability has led to the following conclusions .
has. A market tightly regulated by regulations that have become obsolete despite the liberalization of the sale prices of diesel and gasoline on the national market
b. A market totally dependent on imports from abroad and whose volumes are constantly increasing.
vs. High concentration in the import and storage markets, the level of which is generally below the threshold provided for by the regulations.
d. A rapidly growing diesel and gasoline distribution network and a high level of concentration on the distribution market for these products.
e. World prices for crude oil and refined products (diesel and gasoline) up sharply since the start of the second half of 2021.
f. A strong correlation between the price of a barrel of crude oil, the quotations of refined products and the selling prices on the national market during the years 2018 and 2019.
g. A weakening of the correlation between the price of a barrel of crude oil, the quotations of refined products and the selling prices on the national market during the years 2020 and 2021 as well as the first four months of the year 2022.
h. An immediate impact of increases in international quotations and staggered over time in the event of declines.
i. A selling price structure composed mainly of the purchase prices of diesel and gasoline internationally and taxes levied by the State.
d. A tax component of the price of diesel and gasoline which decreases in proportion to the increase in their prices internationally.
k. A very fluctuating gross distribution margin with a relatively low weight in the composition of the sale price at the pump.
I. High distribution gross margin levels in 2020 and 2021, a period which saw the fall in crude oil prices and prices of refined products internationally.
Mr. A level of net margin (diesel and gasoline) oscillating between a minimum of 0.07 DH/l and a maximum of 0.68 DH/l during the period (2018-2021).
not. An attractive fuel distribution activity in view of the very high financial rates of return it generates.
Recommendations
The analyzes carried out within the framework of this opinion and the resulting conclusions, make it possible to issue a certain number of recommendations aimed essentially at making the diesel and petrol markets more competitive, taking into account the economic reality. structure of these markets and that of the economy of the country which is not an oil producer.
This is a fundamental characteristic, which underlies all the proposals listed below, and which aim to make these markets more transparent and contestable, that is to say more open to real competition by price between the operators of these markets. This is one of the best routes that can guarantee a regular supply of these products to the markets at economically reasonable prices.
has. Review urgently, as a priority and in depth the framework and mode of regulation of these markets.
b. Further ease the conditions for access to the upstream and downstream diesel and gasoline markets by accelerating the implementation of the recommendations issued by the Council in 2019.
vs. Review the legal and regulatory framework governing contractual relations between distribution companies and service stations.
d. Encourage diesel and gasoline market operators to use risk hedging instruments.
e. Study the opportunity to maintain and develop a refining activity in Morocco.
f. Extend the tax system currently applied to protected sectors, to the petroleum products distribution market while introducing an exceptional tax on the excess profits of diesel and gasoline import, storage and distribution companies.
g. Rule out any possible return to the direct subsidy of these products and introduce instead direct aid to the most vulnerable populations and adequate tax relief for the benefit of the middle classes.
h. Accelerate the implementation of the energy transition strategy