Morocco’s Fuel Market Records Mixed Trends in Third Quarter of 2024

Rabat – The revenue of Morocco’s nine major fuel distributors reached MAD 20.16 billion ($1.96 billion) in the third quarter of 2024, reflecting a 5.8% drop compared to the same period last year when it stood at MAD 21.4 billion ($ 2.08 billion).

Despite the revenue decline, total sales volumes of diesel and gasoline rose by 4.8%, totaling 2.33 billion liters, according to the Competition Council’s latest report.

Monitoring market commitments

This recently posted report is the council’s fourth quarterly analysis of the commitments made by the nine distributors under transactional agreements. These commitments include regular reporting to track activities in supply, storage, and distribution.

The findings provide insights into revenue trends, market share, international fuel price correlations, and gross margins.

Supply trends

The number of authorized importers of liquid petroleum products remained steady at 31 companies by the end of September 2024.

Morocco’s total fuel imports reached 1.7 million tons, valued at MAD 12.9 billion ($1.26 billion) which reflects a 10.8% rise in volume but a 9.75% decline in value compared to the same quarter in 2023.

Diesel accounted for 88% of these imports, with gasoline making up the remaining 12%.

The nine key distributors handled 84% of the total imports, recording a 5.1% increase in volume to 1.43 million tons. However, the value of these imports dropped by 14%, from MAD 12.66 billion ($1.24 billion) in 2023 to MAD 10.89 billion ( $1.06 billion) in 2024.

Diesel imports rose by 3.6% in volume but dropped 15.4% in value. Gasoline imports increased by 18.4% in volume but marked a 3.6% decline in value, reaching a total of MAD 1.46 billion ($143 million).

Tax revenue and storage capacity

Tax revenues from fuel imports grew by 6.6%, amounting to MAD 7.21 billion ($705 million), driven by a 10.8% increase in import volumes.

The internal consumption tax contributed MAD 5.35 billion ($523 million), representing 74% of the total fiscal revenue.

Morocco’s total fuel storage capacity stood at 1.56 million tons at the end of September, an increase of 4.2% compared to the second quarter of 2024. Diesel made up 88% of this capacity.

The nine distributors accounted for 1.27 million tons of storage capacity, representing 81.7% of the market total.

Distribution and sales

The number of licensed fuel distributors remained unchanged at 35 operators, while the total number of gas stations rose to 3,478, with 31 new openings in the third quarter. The nine main distributors operated 2,520 stations, a slight decrease from 2,543 stations in the previous quarter.

The volume of total fuel sales reached 2.33 billion liters, a 4.8% year-on-year increase. The nine distributors sold 1.9 billion liters, representing 82% of the market’s total sales.

Diesel accounted for 1.59 billion liters, making up over 83% of total sales.

Price and margin analysis

The report noted a decline in international fuel prices, purchase costs, and domestic selling prices.

Distributors fully reflected the price drop for gasoline but retained part of the savings on diesel. Average gross margins reached MAD 1.46 ($0.14) per liter for diesel and MAD 2 ($0.20) per liter for gasoline, slightly higher than in the second quarter.

These figures indicate that distributors managed to maintain stability in their profit margins despite fluctuating market conditions.