Morocco Ends Butane Gas Subsidy, Sparking Price Hikes and Economic Concerns

With this measure, the price of butane gas has recorded an increase of 2.50 dirhams for the 3 kg bottle and 10 dirhams for the 12 kg bottle. Looking closely, this decision is likely to have inevitable repercussions on other sectors of activity, analyzes the daily Les Inspirations Éco which estimates that its effects will be considerable "due to its transversal nature".

Certainly the government has planned a program of direct social assistance in favor of low-income households, but "consumers should expect a surge in the prices of several products that will be directly affected by this increase," warns Bouazza Kherrati, president of the Moroccan Federation of Consumer Rights (FMDC).

The government "has strengthened the direct social assistance program with a set of social programs, including the direct assistance program which targeted the equivalent of 3.6 million families on average by the end of April 2024, in addition to the generalization of medical coverage, which has covered 4.2 million families, by making them benefit from AMO Tadamon," says the specialized daily, citing data from the Directorate of Competition, Prices and Compensation.

The publication hopes that the housing assistance program, which should impact 330,000 families over three years, as well as the announced increase in the salaries of public officials and private sector employees, will help improve the purchasing power of more than 4 million