Competition Council: Nine major companies dominate 84% of domestic fuel market
Fuel Prices Soar: Moroccan Companies Rake In Profits Despite Market Volatility
Fuel distributors enjoyed a surge in profitability in 2024, despite ongoing global price fluctuations. The Competition Council's Q1 2025 report reveals that the industry rebounded strongly from years of uncertainty.
Dominating a $78 billion market: Nine major companies control 84% of Morocco's fuel distribution sector, generating a total revenue of 77.9 billion dirhams last year. Net profits reached nearly 2.3 billion dirhams, with an average net margin of 2.9% across the sector – equating to 43 centimes per liter of diesel and 61 centimes per liter of gasoline.
A dramatic turnaround: This marks a significant increase from the 1% average margin seen in the previous three years, reversing the instability witnessed in 2022 and 2023 when profit margins plummeted to just 0.6% due to global price surges and market disruptions.
New players shake up the scene: While the top nine distributors maintain a strong grip on the market, new entrants like BGN Energy Maroc, BB Energy, and Appollo Petroleum are gaining ground, intensifying competition in pricing, storage capacity, and retail network expansion.
Growth fueled by volume: Fuel sales volumes increased by 3% to 7.3 billion liters in 2024, indicating that volume growth is driving the sector's improved financial performance more than price fluctuations.
Diesel vs. Gasoline: A Profit Disparity: The report highlights a structural disparity in margins between diesel and gasoline. In 2024, the average net margin for diesel stood at 43 centimes per liter compared to 61 centimes for gasoline – attributed to differences in supply costs, taxes, and targeted commercial strategies.
Retail prices remain high: Despite slight decreases in international prices, retail fuel prices have remained elevated, widening the gap between pre-tax purchase costs and consumer prices.
Sustainability Concerns Linger: While the sector enjoyed a strong financial rebound in 2024 with returns on capital employed (ROCE) at 30% and return on equity (ROE) at 29%, disparities remain significant between companies. Dividend payouts have also declined, highlighting potential concerns about long-term sustainability.
The Competition Council emphasizes that despite the strong performance in 2024, it is not enough to guarantee long-term, sustainable growth in the sector.