Rapid Rises, Slow Falls: Morocco's Fuel Price Volatility Confuses Consumers

Moroccans are experiencing a perplexing trend in fuel prices: sharp increases followed by sluggish decreases, leaving consumers bewildered and frustrated. This volatile situation has reignited debate over the pricing mechanisms for fuel within the country, particularly in light of recent global market fluctuations.

Economic experts, such as Mohamed Jadri, emphasize the direct link between international oil prices and the Moroccan market. He points out that the recent surge in global oil prices, from around $70 to $110 per barrel, was swiftly reflected in national prices through successive hikes. Jadri argues that basic economic logic dictates that the subsequent decreases in international prices should be mirrored domestically with equal force and speed. "Common sense dictates that prices should be reduced in dirhams as they were raised in dirhams, not through marginal reductions that do not reflect the reality of the decline in the international market," he stated.

Adding to the complexity, Youssef Karraoui Filali, an economic expert and head of the Moroccan Center for Governance and Management, highlighted the impact of geopolitical events, such as the closure of the Strait of Hormuz, on fuel price volatility. He explained that such disruptions create imbalances between supply and demand, leading to rapid price increases. However, Filali noted a significant "اختلال في آلية نقل الأسعار" (imbalance in the price transmission mechanism), where national price increases are almost immediate, while decreases are significantly delayed.

This delay, often attributed to distributors needing to sell off inventory purchased at higher prices, allows companies to maintain comfortable profit margins. Filali criticized this practice, known as "التأخر" (delay) or "الدّيكالاج" (lag), where initial, smaller price drops are applied instead of reflecting the full extent of the international decline. He stressed that a fair approach requires symmetry in how market fluctuations are handled, arguing that "what is applied during the increase should also be applied during the decrease." The current system, he contends, allows distributors to profit disproportionately, leaving Moroccan consumers to bear the brunt of the slow-moving price adjustments.