Morocco Implements Incremental Price Increase for Butane Cylinders
The Ministry of Economy in Morocco has announced an impending price increase for gas cylinders, aiming to partially reduce the subsidy on butane cylinders for 2024. Effective from May 20, 2024, the cost of a 12 kg gas cylinder will rise by MAD 10, escalating from MAD 40 to MAD 50. Similarly, the price of 3-kilogram cylinders will witness an upward adjustment of MAD 2.5.
This decision follows Head of Government Aziz Akhannouch's declaration in 2023, outlining his cabinet's intention to incrementally increase the price of gas cylinders. The rationale behind this measure lies in the substantial cost of Morocco's subsidies for cooking gas, which amounted to MAD 22 billion or $2.1 billion by the end of 2022, as revealed by Minister of Economy Nadia Fettah Alaoui.
The Moroccan government spokesperson, in an earlier statement this year, emphasized that the price hike is part of a broader strategy aimed at bolstering social protection measures and ensuring the allocation of direct assistance to eligible families. The spokesperson underscored the necessity for such adjustments to finance these crucial initiatives effectively.
As Morocco navigates the complexities of its energy landscape, this incremental price adjustment reflects the nation's commitment to striking a balance between fiscal prudence and safeguarding the welfare of its citizens. The move is expected to generate discussions and debates around the nation's energy policies and the role of subsidies in the evolving economic landscape.