Morocco Cuts Subsidies on Butane Gas and Sugar as Prices Rise

The cost of the butane gas subsidy in January 2021 reached 938 million dirhams (MDH) instead of 960 MDH recorded in January 2020, a decrease of 2%. As for sugar, its compensation charge in quantity and value fell by 7%, reaching 258 MDH, compared to 276 in 2020. Regarding the average price of butane gas, it increased by 5% in January 2021, compared to the same period in 2020. Moreover, in February 2021, this price reached $556 per ton, with an increase of 6% compared to the month of January and 3% compared to last year, according to the latest information bulletin from the Compensation Fund.

However, from January to February 2021, the average butane gas prices rose by 4% compared to the first two months of 2020. As for sugar prices, they experienced a 12% increase in January 2021 compared to the same period in 2020. This increase continued in February 2021, reaching an increase of 7% compared to January 2021 and 12% compared to February 2020. For the first two months of 2021, the average sugar prices saw an increase of 12% compared to the same period in 2020, it could also be noted.