Morocco’s total imports of diesel and gasoline reached 1.65 million tons in the second quarter of 2024, with a financial outlay of 14.03 billion dirhams, marking increases of 11.2% and 15.9%, respectively, compared to the same period in the previous year.
According to a report from the Moroccan Competition Council, titled “Monitoring the Implementation of Commitments by Diesel and Gasoline Distribution Companies Under Settlement Agreements with the Competition Council,” diesel accounted for more than 88% of both the volume and value of imports.
The report further highlights that the number of companies licensed to import liquid petroleum products rose to 31 by the end of June 2024, an increase of two companies compared to March 2024. The nine companies covered by the report collectively accounted for around 85% of the market’s total imports in Q2 2024.
Increased Imports
The data revealed a 6.8% increase in the volume of imports by these companies, which rose from 1.31 million tons in Q2 2023 to nearly 1.41 million tons in Q2 2024, a difference of 89,000 tons. The value of these imports also grew by almost 12%, reaching 11.96 billion dirhams in Q2 2024.
In terms of specific fuels, diesel imports saw a 6.3% increase, from 1.16 million tons in 2023 to 1.23 million tons in 2024. This represented an increase of 11.4% in value, from 9.26 billion dirhams to 10.32 billion dirhams. Gasoline imports also rose, from about 154,000 tons (1.46 billion dirhams) to approximately 170,000 tons (1.64 billion dirhams), reflecting an increase of 10.3% in volume and 12.2% in value.
Declining Profit Margins
On the downside, the report indicated a drop in the gross profit margins for the nine distribution companies in Q2 2024. These margins were lower than the average levels recorded in the first quarter of 2024.
Gross margins for diesel were about 1.21 dirhams per liter in Q2 2024, compared to 1.46 dirhams per liter in Q1, a decrease of 25 centimes. Gasoline margins were also lower, at 1.79 dirhams per liter, compared to 2.07 dirhams per liter in Q1, a difference of 28 centimes.
The report detailed the fluctuation in profit margins over the quarter, with two distinct periods. In the first period (April to May), margins for both diesel and gasoline decreased, before rising again in the second period (June).
Tax Revenue Growth
In line with the import growth, tax revenues from diesel and gasoline imports also increased, reaching approximately 7.19 billion dirhams in Q2 2024, up from 6.41 billion dirhams during the same period in 2023. This rise was attributed to an increase in the internal consumption tax revenues, which grew by 11.2% due to higher import volumes.
Internal consumption tax revenues amounted to 5.23 billion dirhams, or 73% of the total tax revenue, representing an 11% increase compared to the previous year. Meanwhile, VAT revenues from imports increased by 15%, reaching about 1.96 billion dirhams, accounting for 27% of the total tax revenue.
When broken down by fuel type, the report showed that tax revenues from diesel imports accounted for 83% of the total, amounting to 5.97 billion dirhams, while revenues from gasoline imports made up 17%, or 1.22 billion dirhams.
Contribution of Distribution Companies
The report further noted that the nine distribution companies involved contributed 6.14 billion dirhams, or 85.4% of the total tax revenue in Q2 2024. This includes 4.47 billion dirhams from internal consumption taxes and 1.67 billion dirhams from VAT on gasoline and diesel imports.
Finally, the report confirmed that, as per the settlement agreements, the nine distribution companies are required to provide quarterly reports to the Competition Council. These reports will monitor activities related to the supply, storage, and distribution of diesel and gasoline.
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