## 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.**


## Fuel Prices Soar: Moroccan Companies Rake In Profits Despite Market Volatility

**Fuel distributors enjoyed a surge in profitability in 2024, despite ongoing

#Fuel companies

Competition Council: Nine major companies dominate 84% of domestic fuel market