In a landmark decision, the Moroccan Competition Council announced on Thursday a settlement involving nine fuel distribution companies in the country.
They are to pay a hefty fine of approximately 180 million dollars for violating competition rules to the detriment of consumers.
The regulatory body stated in a release, “The Competition Council has approved settlement records with nine fuel companies and their professional organization, agreeing to pay a conciliatory settlement of 1.84 billion Moroccan Dirhams (around 180 million dollars).”
This settlement concludes the dispute with these companies, which has stirred much controversy in the kingdom in recent years.
The issue revolves around accusations of “collusion” to fix prices and setting high-profit margins, even when international fuel prices fall.
The case gained political dimensions, notably involving “Afriquia Gaz,” owned by the current Prime Minister Aziz Akhannouch, as reported by Agence France-Presse.
Alongside “Total” and “Shell,” it dominates a significant share of the country’s fuel market.
This announcement follows the Competition Council’s August declaration that its investigation services had “found sufficient evidence and arguments to prove the involved companies committed acts against competition rules.”
The origins of the case trace back to February 2020, when a Competition Council investigation led to imposing hefty financial penalties on fuel distribution companies for breaching competition conditions.
However, the decision remained frozen due to disagreements among council members over the penalty amount and the number of companies involved.
Fuel prices in Morocco, which relies on the international market for supply, were state-subsidized for several years before transitioning to market-driven pricing in late 2015.
As part of the announced settlement, “the involved companies … commit to adjusting their prices as needed, in accordance with market supply and demand dynamics.”
This decision marks a significant step towards ensuring fair competition and consumer protection in Morocco’s fuel market.
