Moroccans question rising fuel prices despite global oil drop

Thursday 03 July 2025 - 15:10

By: Dakir Madiha

Moroccans question rising fuel prices despite global oil drop

Global oil prices have seen a significant decline since April, yet Moroccans are feeling little relief at the pump. Amid growing frustration, many blame the government, particularly Prime Minister Aziz Akhannouch, who is also the founder of Afriquia, one of Morocco’s largest fuel distributors.

Global oil prices tumble, but local costs rise

On April 3, global crude oil prices dropped to around $60 per barrel, driven by several factors, including U.S. President Donald Trump’s trade war and a ceasefire between Iran and Israel. These events eased geopolitical tensions and stabilized the oil market, reducing the risk premium associated with potential disruptions to the Strait of Hormuz, a critical oil shipping route.

Globally, fuel prices reflected these changes, with West Texas Intermediate crude falling from $80 to under $60 per barrel since January. However, in Morocco, the effects have been minimal. By mid-April, local fuel prices fell by just 20 cents per liter. Instead of further reductions, prices began climbing again by July 1.

Diesel now costs MAD 10.98 per liter at major stations like Afriquia and Shell in Casablanca, while gasoline prices have risen to MAD 12.94 per liter. At Winxo stations, prices are slightly lower but still high. These increases have left consumers questioning why Morocco’s fuel prices do not align with global trends.

Criticism of pricing and profits

Under the pricing system used before the 2015 fuel market liberalization, current diesel prices should be below MAD 9.41 per liter, and gasoline should cost less than MAD 10.87 per liter. However, the Competition Council’s 2024 report reveals that while gasoline prices reflect international purchase costs, diesel prices dropped only marginally.

Profit margins have further fueled public discontent. By late 2024, net profits per liter reached MAD 1.28 for diesel and MAD 1.67 for gasoline. Though slightly lower than in previous quarters, these figures are significant enough to spark criticism, with many accusing fuel companies of failing to pass on savings to consumers.

Political tensions and conflict of interest concerns

Public frustration is also tied to accusations of a conflict of interest involving Prime Minister Aziz Akhannouch. As the founder of Afriquia, critics argue that his dual role as a government leader and major fuel industry stakeholder undermines transparency and public trust.

This is not the first time Akhannouch has faced such criticism. In 2018, Afriquia was the target of a nationwide boycott campaign. The issue resurfaced in late 2023 when the Competition Council fined nine fuel companies, including Afriquia, MAD 1.84 billion for price-fixing and failing to adjust prices in line with global trends.

Social media campaigns like “#Degage_Akhannouch” have since gained traction, with Moroccans accusing the government of prioritizing corporate profits over public welfare. These controversies highlight the deeper challenges of balancing market liberalization with fair pricing and accountability.