Heba Press
During the second quarter of 2024, the gross profit margins of the nine distribution companies included in the Competition Council’s report recorded levels relatively lower than the average recorded in the first quarter of 2024.
A report tracing the implementation of commitments made by gasoline wholesale and distribution companies within the framework of the conciliation agreements concluded with the Competition Council indicates that “the profit margins achieved by the companies, under the second quarter 2024, amounted to approximately 1.21 dirhams per liter. for gasoline and 1.79 dirhams per liter. These levels remained relatively lower than the average recorded in the first quarter of the year, which stood at 1.46 dirhams per liter for gasoline and 2.07 dirhams per liter for gasoline, a difference of 25 and 28 cents, respectively.
According to the same source, the profit margins analyzed represent the gross commercial margins achieved from the transfer price, weighted by the market shares of gasoline and gasoline distribution of the nine companies concerned.
Thus, the aforementioned report indicates that the average and weighted gross profit margins achieved on gasoline sales during the same period varied between a minimum of 1.05 dirhams per liter and a maximum of 1.34 dirhams per liter.
Concerning gasoline, gross profit margin levels remained relatively higher compared to gasoline, stopping at 0.58 dirhams per liter, and ranging between a minimum of 1.54 dirhams per liter and a maximum of 2.01 dirhams per liter.
In detail, the Competition Council explained that the evolution of profit margins for the average raw material, carried out on the market, recorded two different periods for gasoline and gasoline.
The first period extends from the first half of April to the end of May and is characterized by lower levels of gross profit margins, going from 1.20 dirhams per liter to 1.05 dirhams per liter for gasoline (i.e. a difference of 0.15 dirhams per liter), and from 2.01 dirhams per liter to 1.54 dirhams per liter compared to gasoline (i.e. a difference of 0.47 dirhams per liter).
As for the second period, it covers the remaining half of the months of the second quarter and is marked by an increase in gross profit margins, going from 1.05 dirhams per liter to 1.24 dirhams per liter for gasoline, an increase 19 cents, and from 1.54 dirhams per liter to 1.81 dirhams per liter. For gasoline, an increase of 27 cents.
Note that the publication of this third report is part of the monitoring of the implementation of the commitments made by the nine companies active in the gasoline and gasoline market and affected by the conciliation agreements concluded with the Competition Council.
The number of commitments contained in the various decisions linked to this agreement reaches seven, including that linked to this report, which is to provide the Council, by each of the companies concerned, with a periodic report every three months, making it possible to monitor the evolution of the situation. activity of supply, storage and distribution of gasoline and gasoline.
