Moroccan Competition Council investigates price explosion of fuels, foods and construction materials

Morocco’s Competition Council introduced a self-referral for the issuing of an opinion on the surge in costs of imports and uncooked supplies within the nation, to know if market failures have contributed to this example

In a reference observe revealed on April 14, the constitutional physique is investigating whether or not the degrees of those value will increase within the home market are dependent solely on exogenous components referring to the surge of imported uncooked supplies, or whether it is associated to unlawful practices and abuses of energy.

It is probably going that the 2 causes, exogenous and endogenous, overlap. As the council explains, “periods of crisis, such as the one we are currently experiencing, are times when anti-competitive practices may appear in commodity markets, as some operators may be tempted to maximize their gains by increasing their profit margins.”

According to the council, the target of the investigation is “to provide a response and understanding to the underlying reasons for recent fluctuations in sale prices at the national level, to assess their impact on national markets and possibly, recommend measures to restore the competitive functioning of said markets.”

The opinion will concern three classes of merchandise, particularly meals, power, and building supplies.

According to the discover, these classes had been chosen for his or her necessity, the diploma of dependence on worldwide markets, and the extent of will increase of their promoting costs.

For meals, the merchandise involved are gentle wheat flour, nitrogen fertilizers, butter, lentils, and milk powder. For power merchandise, the council will examine gasoline, diesel, gas oil, and coal. While for building supplies, the investigation will embrace metal, concrete, glass, aluminum, and copper.

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