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Economy

Ministry Convenes Key Stakeholders to Safeguard Butane Gas Supply Amid Subsidy Reform

Tuesday 21 May 2024 - 10:55

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In a proactive move to ensure a seamless transition during the upcoming butane gas subsidy reform, the Ministry of Energy Transition and Sustainable Development convened a crucial meeting in Rabat on Monday. The gathering brought together representatives from various sectors, including the Ministries of Interior and Finance, as well as industry stakeholders such as importers, bottlers, distributors, and the Professional Association of Liquefied Petroleum Gas (LPG) Wholesale Depositories in Morocco.

The primary objective of this meeting was to coordinate efforts among all parties involved to guarantee an uninterrupted supply of butane gas cylinders for citizens across the country while adhering to the revised pricing structure set to take effect on May 20th. This comes as part of the government's implementation of the direct social aid program and the gradual reform of the subsidy system.

According to the ministry's communiqué, the meeting focused on ensuring that citizens have access to butane gas cylinders, with prices set to increase by 2.5 dirhams for the 3kg cylinder and 10 dirhams for the 12kg cylinder across the various regions of the kingdom.

Collaborative Efforts for Continuous Supply

The ministry affirmed that its regional offices, in collaboration with local authorities and industry professionals, are working tirelessly to monitor and ensure the continuous availability of this vital commodity for all citizens under the best possible conditions.

Subsidy Reform and Direct Social Aid

The partial reform of the butane gas subsidy system is part of the broader implementation of the direct social aid program and the progressive reform of the compensation system. This initiative aims to target eligible households more effectively through a combination of enhanced social programs, including the generalization of social protection, housing assistance, and wage increases for public and private sector employees.

Addressing Supply Chain Challenges

The meeting also provided a platform to discuss the challenges faced by the butane gas supply chain, which accounts for approximately 24% of the nation's total petroleum product consumption. It is noteworthy that butane gas consumption reached around 2.8 million tons in 2023, according to the communiqué. Participants agreed on the need for continued efforts and cooperation between public and private stakeholders to foster the development of activities related to butane gas.

As Morocco navigates the transition towards a reformed subsidy system, the Ministry of Energy Transition and Sustainable Development's proactive engagement with key stakeholders underscores the government's commitment to ensuring a smooth and well-coordinated process. By fostering collaboration and addressing potential challenges, the ministry aims to maintain an uninterrupted supply of butane gas, a vital commodity for households across the nation.