Gas and Electricity Prices in Morocco: The Government Makes a Radical Decision

As the conflict between Iran and the Israel-United States alliance intensifies since February 28, the energy markets are experiencing an unprecedented surge. For Morocco, which is 94% dependent on imports for its energy needs, the stakes are strategic. Several government departments have thus presented, during an initial crisis meeting, scenarios aimed at protecting the purchasing power of citizens against this geopolitical shock wave.

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To this end, the State has chosen to maintain its subsidies on butane gas. Although world prices have jumped by 68% since the beginning of March, the price of the gas cylinder will remain frozen for consumers. This price shield also extends to electricity, whose consumer prices are kept stable to avoid any inflationary contagion effect.

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The government’s response has also focused on the logistics front last Tuesday with the release of direct financial aid for transport professionals. Ranging from 1,600 to 6,200 dirhams depending on the vehicle category, this support is intended to guarantee the fluidity of supply chains. By locking in these budgetary levers, Rabat hopes to stabilize the national economy in the face of a regional crisis whose outcome remains unpredictable.