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Competition Council: Roofing fuel prices is “illegal”

Lahcen Daoudi heavily criticized the “political exit” of the Competition Council, which on Friday (February 15th) disapproved of the government’s request for a cap on liquid fuel profit margins.

According to sources, the Minister for General Affairs and Governance has ruled that the Council’s decision is totally unacceptable “as it is a constitutional institution”. “Assessing the government’s decisions is not a prerogative,” said Daoudi, according to the same sources.

Fuel cap is an unwise choice from an economic, competitive and social justice point of view. This is announced by the President of the Competition Council Driss Guerraoui during a press conference

He specified that the cap is first a cyclical measure limited in time since the provisions of Article 4 of Law 104-12 sets the duration of application to six months, extendable only once. He added that capping is a discriminatory measure that applies to all operators, regardless of their size and the structure of their costs. This may, according to the president, penalize operators of small and medium size who will be more vulnerable.

For Driss Guerraoui, the market suffers from several dysfunctions of a structural nature to which short-term responses can only have limited effects. He pointed out that this finding is based on the analysis of the conditions for the implementation of the full liberalization of fuel prices that came into force in December 2015.

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