A price check by Le360 at several stations in central Casablanca on Friday morning found diesel prices ranging from MAD 16.10 to MAD 16.18 a liter, while gasoline was priced between MAD 15.59 and MAD 15.63.
Shell and Petromin were charging MAD 16.18 a liter for diesel and MAD 15.63 for gasoline. At Winxo, diesel stood at MAD 16.15 and gasoline at MAD 15.62. Afriquia was selling diesel at MAD 16.10 and gasoline at MAD 15.59.
The latest increase, introduced on October 1, added MAD 0.80 per liter to diesel and MAD 0.39 to unleaded gasoline.
Diesel prices are now approaching the record recorded in Casablanca in 2022. The price reached MAD 16.57 a liter on July 5 that year, just MAD 0.39 above the current price at Shell and Petromin.
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Gasoline remains further below its own record of MAD 17.78 a liter, recorded in Casablanca on June 15, 2022.
A series of increases since July
The latest hike follows several increases since mid-July. Diesel prices rose by MAD 0.69 in mid-July, MAD 1 at the start of August, MAD 0.65 in mid-August, MAD 0.06 at the start of September and MAD 0.34 on September 16.
The additional MAD 0.80 increase in October brings the cumulative rise since mid-July to about MAD 3.54 a liter.
Diesel is now around MAD 0.55 a liter more expensive than gasoline in Casablanca.
The latest increase comes as international markets for refined petroleum products remain under pressure.
Houcine El Yamani, secretary-general of the National Union of Petroleum and Gas Industries, affiliated with the CDT, and president of the National Front for the Safeguarding of Samir Refinery, said diesel prices on international markets had risen above $1,400 a ton, compared with around $700 before the recent conflicts in the Middle East.
He attributed the increase partly to lower global supplies of refined products, disruptions affecting some refining capacity and difficulties along several supply routes.
El Yamani said the market was also seeing a widening gap between crude oil and refined products because of a shortage of fuel supplies. He estimated that diesel was currently trading at a premium of nearly MAD 6 a liter over crude oil, which he said reflected the high profitability of refining under current market conditions.
Samir refinery debate returns
For Morocco, El Yamani estimates the annual cost of diesel imports at more than MAD 40 billion, excluding other refined petroleum products such as gasoline, jet fuel, industrial fuel and bitumen.
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He linked the country’s dependence on imported refined products to the shutdown of the Samir refinery in Mohammedia.
According to El Yamani, if the refinery had been taken over by the state after being placed into liquidation in 2016, it could have helped secure part of Morocco’s domestic supply and eased pressure on pump prices.
He recalled that the National Union of Petroleum and Gas Industries had proposed that the state take over Samir’s assets through compensation against public-sector claims. El Yamani said the proposal was rejected by the outgoing government majority when it was examined by Parliament.
He also warned that a prolonged conflict in the Middle East, along with the war involving Russia and Ukraine, could further disrupt international supplies and put additional pressure on energy prices.
El Yamani called for refining operations at Mohammedia to resume quickly, arguing that the site should not be limited to storing petroleum products.
He also called for a temporary reduction in fuel taxes, proposing a cut of around MAD 4 a liter for diesel and MAD 5 for gasoline until international prices ease.
