Morocco's substantial investment in butane gas subsidies

Saturday 03 May 2025 - 10:53

By: Dakir Madiha

Morocco's substantial investment in butane gas subsidies

The Moroccan government grapples with the significant financial burden of subsidizing butane gas, as highlighted by Fouzi Lekjaa, the Minister Delegate in charge of the Budget. Annually, the country allocates over MAD 15 billion to support this essential household fuel, with the average subsidy for each 12-kilogram gas cylinder reaching MAD 62.

Despite the rising costs, Lekjaa reassured the public that there are no plans to increase the price of butane gas. His remarks came in response to parliamentary inquiries about recent price adjustments. He explained that the government had implemented slight increases in the cost of 3 kg and 12 kg gas cylinders—MAD 2.5 and MAD 10 respectively—only after the launch of a new direct social assistance program in December 2023. This program included a four-month transition period aimed at mitigating the impact on low-income households.

According to Lekjaa, data from the High Commission for Planning (HCP) indicates that the price increase has had a minimal effect on poor families, with the additional monthly cost not exceeding MAD 18. This amount constitutes approximately 3.6% of the minimum monthly financial aid of MAD 500 provided under the new support system.

The direct aid initiative marks a significant shift in Morocco’s strategy for assisting families. Instead of offering general subsidies—which the government deems costly and ineffective—the new approach delivers financial support tailored to individual needs. With MAD 25 billion earmarked to assist 3.9 million families, monthly aid varies from MAD 500 to over MAD 1,500, depending on each household's circumstances.

In tandem with these efforts, the government is also tackling inflation, particularly in the agricultural sector. A budget of MAD 20 billion has been allocated to support the farming seasons of 2022–2023 and 2023–2024. Furthermore, a new emergency plan is under development for the upcoming 2024–2025 agricultural season to guarantee the availability of food at reasonable prices.